Jury verdict may force Red Hawk Casino's closure, Shingle Springs tribe says
20.05.12
The owners of Red Hawk Casino say they may have to close the 3-year-old gambling palace following a devastating $30 million jury verdict.
With its financial pressures intensifying, the Shingle Springs Band of Miwok Indians warned in court papers of a "doomsday scenario" if the cash-poor tribe is forced to pay the December judgment. Under that scenario, the tribe said lenders would take steps to seize the casino's cash, forcing Red Hawk out of business.
"Any efforts to presently execute on the judgment would likely have catastrophic consequences for the tribe and all who depend on the casino for their livelihood," tribal attorney Sanford Kingsley wrote in a recent filing in El Dorado Superior Court.
The Shingle Springs casino employs 1,350 workers.
A jury in December awarded $30 million to Sharp Image Gaming Inc., the tribe's former business partner, over a breach-of-contract dispute. Sharp said the tribe reneged on an agreement for the company to supply slot machines.
[ Via: Sacramento Bee | Read more... ]