Silver Legacy's Parent Company Owe a Bunch of Money

by Mike Van Houten / Feb 8, 2012

The Reno Gazette Journal posted an ominous article about the Silver Legacy, as did News 4, that the parent company of Silver Legacy owes $142 million in mortgage notes by March 1. As with any ominous post without a lot of detail (Silver Legacy is declining to comment at this time) people are applying a big sticker of DOOM to the situation, perhaps prematurely.

What are the chances the Silver Legacy could really close? Restructuring can be a good thing. I have very smart readers, and I'd love to get your take on what this all means, since the Silver Legacy is being tight-lipped.

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  • February 8, 2012 - 10:29:20 PM

    Restructuring is a good thing. Would not be surprised if the Caranos end up with the building.

  • February 9, 2012 - 9:18:56 AM

    I agree with DTM Dude, I think since both parties have a vested monetary interest they will find a way to keep the doors open.

  • February 9, 2012 - 9:35:02 AM

    I agree with Nadine Pranfield. Since this is a shared property with the MGM Resorts International, this could result in the dissolving of said partnership and full ownership by the Caranos. I don't the the Legacy will close. I do think MGM may pull out and leave Circus Circus hanging though.

  • February 9, 2012 - 10:34:32 PM

    I consider myself a pro on hospitality in this market and without a doubt, Silver Legacy is going nowhere. This is a 1700 room megaresort in the core of Downtown Reno, no one person would let this go under no matter how bad their debt is. It could be worse, but $142 million is a lot. They'll get it taken care of and Silver Legacy will continue to be a major player in this region as it always has been. Just because a property is struggling with debts, doesn't mean it's failing. Planet Hollywood Resort in Las Vegas was in debt more than $300 million and that was assumed by Harrah's now Caesars Entertainment when they bought it. Similar scenario, it was just purchased by another company. CityCenter, also in Vegas, almost put MGM Resort under. Silver Legacy is no exception, Reno is not dying, we're alive we're still a tourist attraction and so is Silver Legacy along with it's neighbors.

  • February 12, 2012 - 1:30:50 PM

    I hope the Silver Llegacy closes

  • February 12, 2012 - 8:30:52 PM

    @Jeff You *want* the Silver Legacy to close?!? Yeah, that's *real* constructive. Just what we need, yet another abandoned building in the heart of Downtown Reno. I never thought I'd ever see a CAVE actually be so honest and upfront about what they want to have for the future of our great city: abandonment and utter failure.

  • February 13, 2012 - 9:58:26 AM

    I wonder what Jeff Meyers would like to see take the Silver Legacy's place?