Just shy of the first anniversary of Mesquite Gaming, Inc. emerging from corporate bankruptcy, Randy Black, Sr., minority owner of the company, filed for Chapter 7 bankruptcy on July 4.
The action was accomplished on a holiday via electronic filing and included Black's wife, Kathy. Court documents show that Black's debts are primarily business-related as opposed to consumer-type debts.
The bankruptcy petition estimates the number of creditors as less than 49. Black estimated the couple's liabilities between $10 million and $50 million. His assets have an estimated value of less than $50,000.
Chapter 7 bankruptcy rules allow the couple to exempt certain property from the action.
The bankruptcy filing follows a ruling issued July 3 by Magistrate Judge George Foley, Jr. in U.S. District Court allowing Bank of America to subpoena lease information for three tenants at a building Black owns in Summerlin, next to the 215 Beltway.
In 2005 Black made a personal guarantee on a loan to construct the 70,000 square foot building, promising to cover any difference between the amount owed on the building and its value once the loan matured.
Earlier this year, Bank of America set the loan value at $14.6 million, including interest and charges, while the building's value was set at just less than $11 million. That put Black on the hook to pay the loan out of his own pocket.
The office structure houses the Black & Lobello law offices who filed the bankruptcy action on Black's behalf.
Black filed bankruptcy in March 2010 for his company, Black Gaming, Inc., that owns the Virgin River Casino, CasaBlanca Casino, the now-shuttered Oasis Casino, and the Mesquite Star Casino that’s been closed for years. The company emerged from that action on August 1, 2011, with Black’s interest reduced to 10 percent and a new name, Mesquite Gaming, Inc.
Anthony Toti was named Chief Executive Officer of the newly restructured company and holds 25 percent of the stock. Newport Global Advisors LP of Woodlands, Texas has 40 percent of the Mesquite Gaming stock, while South Point Casino (Las Vegas) owner Michael Gaughan and his family took the remaining 25 percent.
Black continues to be featured in most of the commercials for the CasaBlanca and Virgin River casinos.
He did not reply to an email request for comment or information.
See Mesquite Citizen Journal story about corporate bankruptcy in July 2011 Black Expresses Thoughts about Bankruptcy