CHICAGO -- Bally Manufacturing Corp., which already had defaulted on its casino debt, said Monday it will not make more than $37 million in payments that are due on two of its bonds.
The moves reflect the tightened squeeze on the gambling business, which had gone through an impressive expansion in Las Vegas in recent years.
Bally, one of the nation's largest gambling concerns, said it will not make a principal payment of $30 million due Wednesday on its Series 2 zero coupon senior subordinated notes.
The company also said it will not make a $7.4 million interest payment scheduled for Wednesday on its 13.625 percent subordinated debentures due Jan. 2, 2001. The company said there is a 30-day grace period involving the payment on the debentures.
Bally also announced its Health & Tennis Corp. subsidiary had not made a scheduled $18.25 million principal repayment under its $227.5 million bank credit agreement. The company said it is in the process of negotiating with lenders to obtain a waiver until Jan. 15, but added there is no assurance such a waiver will be forthcoming.
Arthur M. Goldberg, chairman and chief executive officer, said, 'We are hopeful that these discussions can be successfully concluded but, of course, we cannot predict their outcome.'
