When President Casinos Mississippi bought the hotels from John Connelly in 1997, it put the hotels into a separate company. The hotel company filed bankruptcy so a judge could restructure its loan payments.
While President Broadwater Hotel LLC goes through the bankruptcy process, things should remain the same. Company executives said the hotels and the golf course will stay open. And nobody should lose their jobs.
So what does filing chapter 11 bankruptcy mean for employees? President executive Terry Wirginis said the bankruptcy will not impact hotel operations at either Broadwater property. Hotel guests and conventions will be welcome throughout the bankruptcy proceedings. Wirginis also said as many as 200 suppliers and other unsecured creditors should be paid in full.
Wirginis believes that within a year, the Broadwater hotels will emerge from bankruptcy with a better way to pay off their three year, $37 million mortgage from Lehman Brothers.
The President executive was confident the hotel bankruptcy case will not slow down expansion plans. He said President officials will keep analyzing ways they can fill in part of the Mississippi Sound.
The President's plan is to float six new casinos near the Broadwater Marina, though it could be scaled back. Wirginis told me the hotels should be out of bankruptcy before the expansion project gets the environmental permits it needs.
Late Thursday afternoon, President officials gave employees a letter, explaining the bankruptcy situation. Executives will be on the coast next week to meet with employees and answer any questions they may have.