Federal Bankruptcy Judge Denies Argosy Request

By ABC9 News

Published 06/11 2014 02:33PM

Updated 06/11 2014 07:57PM

Reading, PA (ABC9 News) - A federal bankruptcy judge has denied the Argosy's request to stop the closing of the riverboat casino on July 1st.

The ruling came down on Wednesday after two days of hearings regarding the Argosy Casino's request for an automatic stay of the Iowa Racing and Gaming Commission's order for the boat to close on July 1st. The request was part of the casino's filing for Chapter 11 bankruptcy.

The judge's denial of that requested stay means the Argosy will likely close at the end of this month. However, Argosy's parent company, Penn National Gaming, vows to continue fighting the casino's closing as stated in this statement from spokesperson Karen Bailey.

"We are very disappointed by the decision of the bankruptcy court today, which will deny us the time we were seeking to pursue our legal remedies in Iowa, and may hasten the Argosy's closure and the loss of hundreds of local Sioux City jobs and our more than $100 million investment in the property.  We will continue to fight for our legal rights through the Iowa courts to stop the shut down of our facility, which would establish a dangerous precedent for other gaming licensees, and private property owners in general, across Iowa."

The Hard Rock Hotel & Casino Sioux City was awarded the license to open a land-based casino in Woodbury County in 2013. The facility is scheduled to open on August 1st.

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