Empire Resorts facing serious financial troubles, according to SEC filing
In its annual report to the SEC, Empire Resorts told shareholders that it might not survive the summer.
Owner of the Monticello Gaming & Raceway, Empire reported losses in operations for 2008 of $9.5 million, which is up from $7.5 million in 2007.
Empire is required to pay an outstanding balance of about $7,150,000 from the Bank of Scotland on May 29. The holders of the company’s senior convertible notes ($65,000,000 principal balance due) have the right to demand repayment of the principal amount due on July 31.
The report said “We do not presently have a source of repayment for this credit facility or for these notes and our operations will not provide sufficient cash flow to repay these obligations.”
“These factors, as well as continuing net losses and negative cash flows from operating activities as well as an uncertain economic environment, raise substantial doubt about our ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.”
