New Owner of Bally Says He’ll Sell Assets

Investor Arthur Goldberg took charge of Bally Manufacturing Corp. Friday and announced that he will sell assets--which range from casinos to health clubs--to cut the company’s staggering debt.

Bally also said its Nevada casino unit would miss an $18.4-million interest payment due Oct. 15, prompting Standard & Poor’s Corp. and Moody’s Investor Service to lower the company’s debt rating.

Stock in Chicago-based Bally fell 12.5 cents to $3 on the New York Stock Exchange.

Goldberg, named interim chief executive to succeed the retiring Robert Mullane, said he will begin a major review of all Bally businesses to decide what to sell.

“Those companies not identified as core companies will be sold,” he said. “It’s a full-scale, ground-zero examination.”

In addition to its four casinos in Las Vegas, Reno and Atlantic City, N.J., Bally operates 315 health and tennis clubs and makes gaming devices, lottery ticket machines and exercise equipment.