Majestic Star Chairman Appears Before State Gaming Control Board
Posted: 12:43 pm EDT July 10, 2008Updated: 4:17 pm EDT July 11, 2008
HARRISBURG -- Majestic Star Chairman Don Barden appeared before the State Gaming Control Board and asked it to allow some new investors to take control of the North Shore project.Barden came under intense scrutiny after failing to pay $10 million to contractors and stopping construction at the casino site. His financial stability is now in question.Channel 11 News reporter Andy Gastmeyer learned Don Barden petitioned the gaming control board to change the people in control of the massive Pittsburgh casino project. If approved, Barden would no longer be the principal of Majestic Star, the entity building the riverfront casino complex on the North Side. Barden has said he is unable to secure permanent financing on his own needed to move forward.Pittsburgh City Councilwoman Tonya Payne represents the district where the majestic star casino will sit.She said Friday, "it's a major issue for us in the city and we are hoping it all works out, but i'm not sure if and when it does get worked out."The new partners would be an entity called “Holdings” that would include Greg Carlin, another casino developer and family members of financier Neil Bluhm."I don't think we all know a whole lot about this person that is suppose to be the bail out. I don't think any of us know a whole lot about him," Payne said.Mr. Barden is saying approval by the board of this transaction is necessary to obtain permanent financing. In more dramatic terms, he says the goal of thursday's request was the reorganization and recapitalization of a distressed project.The belief is the new investor group will attract funding from financial institutions making it possible to complete the project.
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