GARY, Ind. (STNG) - A federal bankruptcy court on Wednesday granted Majestic Star Casino, LLC's first-day motions that will allow its casinos and hotels to continue operating.
The company received court approval to continue to pay employees' compensation and benefits without interruption and to utilize its cash to meet its ongoing obligations during the Chapter 11 process.
The court also authorized the company to continue its various customer reward programs and promotional events without any change.
"We accomplished a great deal in the first few days of our Chapter 11 restructuring," said Don H. Barden, the company's chief executive officer.
The filing includes the company's adjoining Majestic Star casinos in Gary, Ind., Fitzgeralds Casino Hotel in Tunica County, Miss., and Fitzgeralds Casino in Black Hawk, Colo.
Majestic Star said it ended June with nearly $750 million in liabilities and about $406 million in assets.
Some lenders declared the company in default on nearly $80 million in debt.
On Monday, the casino company filed Chapter 11 bankruptcy petitions as a way of restructuring its long-term debt.
The company's Chapter 11 petitions were filed in the United States Bankruptcy Court for the District of Delaware.
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