Bally to Miss Bond Payments: Bally Manufacturing...
From Times Staff and Wire Reports
Bally to Miss Bond Payments: Bally Manufacturing Corp., which already had defaulted on its casino debt, said it will not make more than $37 million in payments that are due on two of its bonds. The moves reflect a crunch in 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% subordinated debentures due Jan. 2, 2001. The company said there is a 30-day grace period involving the payment on the debentures.
