Black Gaming may need more funds to finance 2009 operations, debt payments

By Caroline Salls

Pittsburgh, Aug. 14 - Black Gaming, LLC may need additional funds to meet requirements for operations, capital expenditures for existing operations and scheduled debt payments for 2009, according to a 10-Q filed with the Securities and Exchange Commission.

The company said it does expect to be able to fund its operations, debt service and capital needs from operating cash flow, cash on hand and through availability under its Wells Fargo Foothill, Inc. credit facility for at least the rest of 2008.

If the current economic conditions and operational declines continue, the company said it may need to seek amendments or waivers to some of the financial covenants in the Foothill facility.

Failure to secure a waiver or amendment could trigger an event of default on the facility and cross-defaults under Black Gaming's senior secured notes and senior subordinated notes.

The company said any acceleration of the credit facility could hurt its ability to repay debt, including the required interest payments on the senior secured and senior subordinated notes.

At June 30, Black Gaming had $8.1 million in cash and equivalents.

Black Gaming is a Las Vegas-based hotel casino operator.

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