At the Multi Member First Instance Court of Korinthos’ Hall, Club Hotel Casino Loutraki S. was forced to deal with its overwhelming dept to the Public sector, to its employees and insurance funds. It became clear for the Casino, that the ambitious plans for profitable investments belongs to its luxurious past.
An administrative staff member said that the reports referring to Club Hotel Casino Loutraki S.A as a very probable candidate to enter article 99 of the bankruptcy code are “false and groundless. “We are not asking for protection from our creditors, as we have already reached an agreement with them” he added, also mentioning that “we have applied to Justice for an approval demand of the dept adjustment agreement. In any case, if these reports are true, we have to underline that it is not easy for any company to enter into article 99.” From more than 1,100 applications to enter the bankruptcy code, only few have been approved by the Court. Recently the Court had rejected a similar application from Casino Rio.
It is a fact that both casinos’ supervisory authority and Greek Ministry of finance had to suspend the permission of Club Hotel Casino Loutraki S.A, as its debts to public sector reached the amount of 25,225,286.72 Euros.
In addition, Gambling Regulatory Authority, responsible for controling the Casinos function, has not yet done what it is by law its duty to do, in order to secure the public sector’s income from the Club Hotel Casino Loutraki S.A, and must act immediately in order to secure at least the salaries of the casino’s employees.
It’s no big secret, that along with the economic crises that Greece faces, there is a dramatic decline in all casinos annual revenue (approximately 40 -50%). Indicative of this situation, is the fact that Regency Casino Mont Parnes, and Casino Rio have taken a series of actions like salary reductions and staff deduction.