Las Vegas-based casino operating company Herbst Gaming may wind up in bankruptcy court if executives are unable to resolve the company’s debt by December 3. Herbst must pay its bondholders more than $846.8 million or outline a debt-restructuring plan before the December deadline.

Earlier this year, Herbst’s bondholders had put the company into default. Lenders are now requiring the company to pay the principal on the loans or come up with a plan to restructure the debt.

Wachovia gaming analyst Dennis Farrell Jr. told the Las Vegas Review-Journal that bankruptcy seems inevitable for Herbst at this point.

“From a lender’s perspective, there has been tremendous decline in the valuations (of the bonds) and there is a continued weakness in the locals gaming market,” Farrell told the newspaper. “The question is what kind of equity value is in the Terrible’s brand and the name.”

The company recently stopped taking midweek hotel room reservations for its Terrible’s-branded Buffalo Bill’s hotel and casino.

Guests can stay at Buffalo Bill’s, which is one of three Terrible’s properties in Primm Valley, on Friday, Saturday and Sunday. During the week, Terrible’s patrons can stay at Whiskey Pete’s or Primm Valley, which are also owned by Herbst Gaming.

The casino floor and restaurants at Buffalo Bill’s will remain open during the week.

By Casino Connection Staff