Company cites challenging
economic and capital market conditions
In light of challenging economic and capital market conditions, greater
demands on the company’s available cash, and increased competition and construction
costs, Seneca Gaming Corp. has decided to suspend construction at Seneca
Allegany Casino & Hotel and Seneca Buffalo Creek Casino &
Hotel.
In consultation with its owner, the Seneca Nation of
Indians, the company continues to evaluate options and the appropriate timing
to continue expansion plans on the Seneca Nation’s Allegany and Buffalo Creek
territories.
“We have kept a close eye on the state of the economy and
the impact it has continued to have on every person and every industry across
the country,” Barry Snyder Sr., Seneca Gaming Corporation chairman, said in an
Aug. 29 announcement. “In keeping with our financial commitments to our owner,
the Seneca Nation of Indians, and with our obligations to our bondholders, we
have decided that it is our responsibility to suspend our construction
activities at this time, as we endeavor to preserve the continuing strength and
vitality of our company. We look forward to resuming and completing
construction of these two world-class projects at the appropriate
time.”
Seneca
Gaming Corporation had been erecting steel for both the $130 million hotel
expansion at Seneca Allegany Casino & Hotel in Salamanca
and the $333 million permanent Seneca Buffalo Creek Casino in Buffalo, where the company now operates a
temporary casino. Existing operations at the two facilities will not be
affected by the suspensions, nor will the operation of the company’s flagship
facility, Seneca Niagara Casino & Hotel in Niagara Falls, New York.
“Seneca Gaming Corporation has established
itself as a dynamic and growing presence in the gaming industry and in the Western New York economy, and we expect that to
continue,” said Brian Hansberry, president and CEO of Seneca Gaming
Corporation.
Seneca Gaming suspends construction
October 1, 2008
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