Court approves 3-year plan for Suffolk OTB to pay off $17M debts
Without
fanfare, Suffolk Off-Track Betting Corporation last week quietly won
court approval for a plan to get out of bankruptcy and pay off its $17
million in debts over the next three years.
The agreement with the creditors, approved by U.S. Bankruptcy Court Judge Carla Craig, will allow plans to move forward on purchase of 32 acres just east of Long Island Expressway Exit 64 that once housed a movie multiplex.
It will allow Suffollk OTB and gaming firm Delaware North to construct its new 1,000 machine video lottery terminal casino, which officials now hope to open before the end of 2015.
Under the plan, Suffolk County will be put first in line for repayment gauranteeing Suffolk $2 million in the first year after the casino opens and $3 million in the second. Other creditors will be required to be paid in full by the end of the third year or OTB will be considered in default. However, OTB officials say once the casino opens, they expect to refinance the $65 million construction debt for far less than the 4.75 percent to 7 percent rate it is paying Delaware North, which will build and manage the complex.
The agreement with the creditors, approved by U.S. Bankruptcy Court Judge Carla Craig, will allow plans to move forward on purchase of 32 acres just east of Long Island Expressway Exit 64 that once housed a movie multiplex.
It will allow Suffollk OTB and gaming firm Delaware North to construct its new 1,000 machine video lottery terminal casino, which officials now hope to open before the end of 2015.
Under the plan, Suffolk County will be put first in line for repayment gauranteeing Suffolk $2 million in the first year after the casino opens and $3 million in the second. Other creditors will be required to be paid in full by the end of the third year or OTB will be considered in default. However, OTB officials say once the casino opens, they expect to refinance the $65 million construction debt for far less than the 4.75 percent to 7 percent rate it is paying Delaware North, which will build and manage the complex.
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