P.M. BRIEFING : Bally Buys Restructuring Time
Bally Manufacturing Corp. made a $17.2-million interest payment today on mortgage-backed notes on its Bally’s Grand casino in Atlantic City, buying the company more time to pursue a restructuring plan.
Bally’s Nevada casino division defaulted last month on an $18.4-billion bond payment, raising speculation that the gaming, health club and manufacturing company was headed toward bankruptcy.
Neil Jenkins, Bally’s general counsel, confirmed the interest payment and said Arthur M. Goldberg, interim chief executive, will meet this week with his advisers and the company’s major bank creditors, Manufacturers Hanover Trust Co. and Bank of America, to work out a refinancing plan.
Chicago-based Bally has about $1.86 billion in long-term debt and several other payments due in the next several weeks. The next is a $5-million payment on convertible subordinated debt due Dec. 15.