In Summary: Centaur bankruptcy is a painful process, but for the benefit of Hoosier Park and the community, this was the right path to take.
In the corporate world, one glitch in a multi-state company can ripple from one unit in Pennsylvania and damage branches in Colorado or Indiana.
Such is the case — though it’s more than a glitch — with Centaur, the corporation that runs Hoosier Park Racing & Casino.
A week ago, it filed Chapter 11 bankruptcy, allowing it to continue to keep the racino doors open while reorganizing corporate and operational structure. Hoosier Park’s doors stay open and 1,000 workers keep their jobs.
Centaur’s filing, recorded in U.S. District Court in Delaware, notes there are more than 10,00 creditors. With assets of $584 million and liabilities of $681 million, creditors will likely see little, if any, return. That will affect the $70,377 owed to Anderson city utilities, $30,400 owed to Ed Martin of Anderson and $425,212 to the Indiana Horse Racing Commission, to name a few.
Unfortunately, that is the way of business in America. In this case, it is also the way of Indiana government taking advantage of the average Hoosier’s doubts over gambling as economy savior. Unlike other gambling outlets in Indiana, the state charged Centaur a $250 million licensing fee and imposed a tax rate on the racinos, including Shelbyville, that was higher than riverboat levies.
In part, Centaur says, those fees led to bankruptcy. To a larger extent though, Centaur had substantial delays in the licensing and construction of its Valley View Downs in Lawrence County, Pa. There is no cash flow from that venture. And income from Hoosier Park, off-track betting sites in Indianapolis, Fort Wayne and Merrillville and a casino in Colorado doesn’t cover two liens on Centaur facilities, according to court documents.
Bankruptcy is a sad chapter in any company’s history but it is accepted in America as a way to compromise; it’s deal-making that hurts other business (who could also file bankruptcy). Corporate executives become deal-makers, not thriving businessmen, in order to save face with investors. And where better to make a deal than a gambling facility where every bettor is seeking an elusive deal for fortune.
Bankruptcy shouldn’t surprise us. And we’ll agree that it is the route for Centaur, the right path for a group of executives who have shown concern for this community.
In this case, we’ll accept bankruptcy. It’s a deal we’ve all made to hang onto 1,000 jobs.
Opinion
Editorial: Centaur bankruptcy painful, necessary
- Opinion
-
-
Editorial: If bullying tale is true, APA right to release headmaster
The recent accusations leveled against the headmaster at Anderson Preparatory Academy illustrate how bullying can be perpetuated by administrators who become enablers.
-
Viewpoint: Medical professionals instill confidence
The reason for this letter is not to inform everyone in town “all about my operation,” but far more importantly, to share my remedial experience — physically and emotionally — with gratitude and appreciation for all components of the entire Saint John’s Cancer Center team.
-
Letter: Impatient drivers ignore school bus arm
I would like to take this opportunity to thank all of the people that drive on 38th Street from Columbus Avenue to Scatterfield Road every morning for running my stop arm on the school bus that I drive.
-
Primus Mootry: Memorial Day should make us remember as well as connect
Memorial Day is past, but we should not forget to remember. And unless we more fully grasp our connection to the people of the world, we are lost.
-
Editorial: Get permission before school pranks
Anderson High School decided to show some solidarity with their Cascade peers and filled up the school with post-it notes, all in good fun. This prank was also done after hours but with a big difference: The students had requested and received permission to imitate Cascade.
-
Maureen Hayden: Readers weigh in on low voter turnout
A couple of columns ago, I posed a question about why most Indiana polling places on primary election day had so few customers.
-
You Said It: About fundraiser, missing woman, building preservation
Each Monday, The Herald Bulletin publishes “You Said It,” a compilation of reader comments from www.theheraldbulletin.com.
-
Scott Underwood: Help us with book about local athletes
Over the years, Madison County has been blessed with more than its share of extraordinary athletes. Through their feats on the field of play, they’ve brought us excitement and inspiration.
-
Editorial: Memorial Day helps put face on wounded warriors
This is the perfect weekend to thank a veteran, an active duty service member or a wounded warrior for his or her service. Our positive, encouraging response goes a long way in defining our society.
-
Editorial: Honor those who fought, and celebrate our freedom
This weekend, keep in mind the reason for Memorial Day — to remember those who have been so important in our lives, especially those who made the supreme sacrifice in military service.
- More Opinion Headlines
-
Editorial: If bullying tale is true, APA right to release headmaster
