The Real Deal Miami

Miami Jai-Alai approaches bankruptcy auction

Intended buyer in talks to receive a fee if it loses bid
October 24, 2013 10:00AM

Dania Jai-Alai

Dania Jai-Alai at 3500 Northwest 37th Avenue in Miami

New York-based Silver Entertainment Gaming and Hospitality, the intended buyer of the Miami Jai-Alai casino and fronton, is in talks to have priority bidding at a future bankruptcy auction for the site.

Lawyers for the casino’s parent company, Florida Gaming Corp., announced in Miami federal bankruptcy court yesterday a deal with creditors over an auction that will be held in April, the Miami Herald reported. The parent company filed for bankruptcy protection to halt the planned $115 million sale over concerns that the sales terms added millions of dollars to the property’s debt.

Silver and Florida Gaming are working out the terms of a stalking-horse auction, in which would be paid a penalty fee if another buyer were to beat its bid, the Herald said.

Including an $8 million penalty for rival Hialeah Park opening a casino, Miami Jai-Alai owes lender ABC Funding $122 million, according to Florida Gaming securities filings. [Miami Herald]Mark Maurer