Silver Club moves toward possible reopening
by Associated Press
Dec 03, 2009 | 1391 views | 0 0 comments | 9 9 recommendations | email to a friend | print
RENO, Nev. (AP) — The state Gaming Control Board has recommended approval of a series of casino applications that could lead to the reopening of the Silver Club in Sparks.

Las Vegas-based 777 Gaming's application for the now-closed casino in Victorian Square, along with five other applications for northern Nevada casinos, was passed by the panel on a 3-0 vote. The vote sends a recommendation to the full commission for approval.

The panel also recommended Northern Nevada Asset Holdings LLC, of Colorado Springs, Colo., be allowed to participate in the operations of the properties.

The venture was described as a landlord-tenant agreement between 777 Gaming and Northern Nevada Asset Holdings by longtime gaming lawyer Jeff Silver of Henderson, a representative of Northern Nevada Asset Holdings.

In addition to the Silver Club, the properties included in the landlord-tenant venture include the Commercial Casino and Stockmen's Casino Hotel in Elko, Scoreboard Casino in Spring Creek, the El Capitan in Hawthorne and Parker's Model T Casino in Winnemucca.

The board's recommendations could be given final approval on Dec. 17, when the Nevada Gaming Commission meets in Carson City.

In June, the six Northern Nevada casinos controlled by businessman Hal Holder Sr. filed for Chapter 11 bankruptcy reorganization.

The filing in federal bankruptcy court in June stayed the separate receivership process started in state district court by the note-holder, Northern Nevada Asset Holding.

The holding company acquired the $33 million note for $8.5 million from the Federal Deposit Insurance Corporation. The FDIC got the note following a bankruptcy filing by a bank that originally made the loan to Holder.

Foreclosure auctions for the properties are expected to be held Dec. 23, though no investor is expected to bid or outbid Northern Nevada Asset Holdings, Silver said.

Although it is unclear when the Silver Club would reopen, Northern Nevada Asset Holdings plans no closures of the other five properties, Silver said. Hopefully, there will be a seamless transition from one owner to the other, with no closures and all employees getting rehired, he said.

A 777 Gaming representative told the Gaming Control Board Tuesday that it would take a substantial amount of capital to return the Silver Club to operating condition. The club would need all new gaming equipment before it could reopen, the representative said.
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