The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A gaming supplier yesterday sought court permission to repossess $16 million worth of casino equipment leased to Baha Mar, arguing that the $3.5 billion developer had made no provision to pay due rent under Chapter 11 bankruptcy protection.

PDS Gaming, a US-based company, is alleging that Baha Mar is some $701,008 in arrears on two casino equipment rental contracts, which require it to pay $169,873 and $172,211, respectively.

Peter Carey, PDS Gaming’s chief financial officer, alleged in an affidavit filed with the Delaware Bankruptcy Court that it had supplied Baha Mar with 1,100 gaming devices and associated equipment hardware for the Baha Mar Casino and Hotel under a January 27, 2015, contract.

Disclosing that this was the equipment for Baha Mar’s Bally Technologies casino management system, Mr Carey alleged: “The equipment’s capitalised value less than six months ago was approximately $16 million.

“Upon information and belief, the equipment is in the possession and control of [Baha Mar], and debtors intent to retain and utilise the equipment in the operation of the Las Vegas-style casino that is a primary component of the project. The equipment is essential for the daily operations of the Las Vegas-style casino upon completion of construction.”

Mr Carey alleged that PDS Gaming was suffering “significant hardship” as a result of Baha Mar’s failure to make due lease payments.

And he claimed that Baha Mar’s Chapter 11 budget made no provision for these lease payments, leaving PDS Gaming “bearing the risk of loss” with no ability to recover this.

As a result, he and the company are seeking an Order from the Bankruptcy Court that either compels Baha Mar to continue making the lease payments or permits PDS Gaming to repossess its equipment.