Initial personal bankruptcy document filings by Randy Black, Sr., and his wife, Kathy, on July 4, showed liabilities between $10 million and $50 million and assets estimated at less than $50,000. Additional documents recently filed by the Blacks refine those numbers and set the couples' assets at $2,643,156, and liabilities at $48,809,122.
Black was the CEO of Black Gaming, owning the CasaBlanca, Virgin River, Oasis and Mesquite Star casinos until the company emerged from corporate bankruptcy Aug. 1, 2011. Black's interest was reduced to 10 percent in a newly structured company, Mesquite Gaming, LLC. that now owns the four properties. The Oasis and Mesquite Star casinos are closed.
The new documents state his ownership interest in Mesquite Gaming is worth zero "with a loan balance due and owing in the amount of approximately $1.6 million."
The personal bankruptcy stems from a dispute with Bank of America over a commercial real estate building in Summerlin on which Black made a personal loan guarantee during its construction.
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.
In 2005 Black made a personal guarantee on the 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.
The most recent bankruptcy filing came one day after a July 3 ruling by Magistrate Judge George Foley, Jr in U.S. District Court that allowed Bank of America to subpoena lease information for three tenants in the building. One of those tenants is Black & LoBello, the law firm handling Black's bankruptcy action.
The documents set the value of the couple's home in Las Vegas at $800,000 with other personal assets valued at $1,843,156. Of those assets, a 50 percent ownership interest in Beano's Casino, a small casino in Las Vegas, is valued at $500,000. He also lists a 50 percent ownership interest on the land on which Beano's operates, valued at $700,000 with a "secured debt due and owing for approximately $500,000.
Black listed several assets in Mesquite including a five percent ownership in a Del Taco franchise agreement and a 10 percent ownership in a franchise agreement with Popeye's Chicken restaurant, both located on Falcon Ridge Parkway. The current value of both are listed as zero. Black also had a five percent ownership interest in a Quizno's franchise, located in the same area, which closed in January 2011.
The Chapter 7 bankruptcy documents show that Black has a personal guaranty for a business debt on Beano's real estate of $889,452 and another one for "Shucks III Landlord LLC valued at $1,923,095. In addition, a legal action is pending for a Line of Credit worth $1.9 million. All three claims are held by Bank of Nevada.
Other personal guaranties for business debts include three actions by BB&T, Wilson, NC, for a total of $7.6 million. A line of credit from City National Bank in Los Angeles, CA worth $2 million is included in the bankruptcy action.
"A Promissory Note used to purchase 98 percent ownership interest in Black Gaming, LLC" to Michael Gaughan, South Point Hotel & Casino, worth $15 million, is also included in the documents.
Black lists a monthly gross income of $38,461 from Mesquite Gaming, LLC with a net of $25,681. Monthly expenses are estimated at $25,772 leaving a negative income balance of $90.
Black initially filed the personal bankruptcy action on July 4, via electronic filing.
See additional Mesquite Citizen Journal stories Black Files Personal Bankruptcy Action and Black Expresses Thoughts about Bankruptcy