THE OWNER OF THE RIVIERA HOTEL & CASINO ON THE LAS VEGAS STRIP HAS RECENTLY FILED FOR BANKRUPTCY PROTECTION. RIVIERA HOLDINGS CORP FILED CHAPTER 11 UNDER A PRE-NEGOTIATED DEAL THAT WILL END UP TRANSFERRING THE OWNERSHIP OF THE COMPANY TO SECURED LENDERS. THE REORGANIZATION PLAN HAS THE APPROVAL OF A MAJORITY OF THE LENDERS HOLDING PARTS IN IT'S NEARLY $248 MILLION IN DEBT. THE RECENT FILING HAS NO IMPACT ON THE DAY TO DAY RUNNING OF THE RIVIERA HOTEL AND CASINO IN LAS VEGAS AND THE RIVIERA IN BLACK HAWK, COLORADO WHICH REMAIN OPEN. RIVIERA HOLDINGS LOST $4.5 MILLION AS REVENUE FELL IN THE FIRST QUARTER. WHILE ROOM OCCUPANCY WAS UP, THE AVERAGE ROOM RATE IS LAS VEGAS CONTINUED TO FALL AS THE HOTEL COMPETED WITH OTHER VENUES IN THE CITY WHICH ALSO HAVE BEEN DROPPING THEIR PRICES. LIKE MANY LAS VEGAS PROPERTIES, THE RIVIERA HAS BEEN AFFECTED BY THE DROP IN TOURISM. THE PROPERTY ITSELF HAS ALSO SUFFERED BECAUSE OF ITS NORTH STRIP LOCATION. MANY OF THE CASINOS ON THE NORTHERN END OF THE STRIP HAVE BEEN TORN DOWN OR SOLD TO MAKE WAY FOR NEW BIGGER AND MORE OUTRAGEOUS RESORTS LEAVING UNATTRACTIVE GAPS ALONG THE GLITTERING BOULEVARD.
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