Signature Casino in Las Vegas Files for Chapter 11 Bankruptcy
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Signature Casino in Las Vegas Files for Chapter 11 Bankruptcy Help

August 29, 2012


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Jerry’s Nugget Casino, one of the most popular casinos in gritty North Las Vegas, is filing for Chapter 11 bankruptcy protection , according to a report from the Las Vegas Review-Journal. The casino, which has been operating for nearly 50 years, filed for bankruptcy after failing to restructure its debt during informal negotiations with its creditors.

And the casino may have been pushed into bankruptcy court when its primary lender, U.S. Bank, filed a collection lawsuit in Clark County District Court demanding that the court install a receiver to take over the company, which owes the bank $3.6 million.

After the bank filed the lawsuit, the CEO of Jerry’s Nugget, Joseph Stamis, told reporters that the lawsuit would eventually be dismissed, but several months of negotiations did not result in the dismissal of the lawsuit.

As a result, Stamis and his casino decided to take advantage of bankruptcy’s automatic stay, which stops the pending lawsuit and gives the casino some breathing room while it tries to restructure its debt.

In an official statement, Stamis told sources that the casino’s “best efforts at structuring a deal outside of court have failed,” and that it was “in the best interest of the company, our employees and our customers to utilize the bankruptcy process to reach more traditional refinancing terms.”

In good news for Las Vegas gambles, sources say that Jerry’s Nugget continues to keep operating during the bankruptcy process. Sources indicate that the business is worth at least $8 million, although it also has debts of more than $10 million, according to its bankruptcy petition.

The company also owns 12.4 acres in Las Vegas, which is worth a healthy sum. Jerry’s Nugget was founded in 1964 by the Stamis family and has slowly grown over the past five decades. Today, the 24,500-square-foot gambling den has 630 machines and features nine different table games.

Local sources say the casino also opened a large bingo room in recent months, and features a popular bakery, revealing that Jerry’s Nugget, much like other casinos in the north end of Las Vegas, cater to older crowds, many of whom reduced their gambling expenses during the last recession.

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