Work Resumes on Pittsburgh Casino

Fri September 12, 2008 - Northeast Edition
CEG



PITTSBURGH (AP) Construction is resuming on Pittsburgh’s slots casino project now that a new investment group has closed on financing for the $780 million project.

Holdings Acquisition Co. CEO Greg Carlin said Aug. 19 construction was restarting immediately. Contractors have been idled since July 1. They’re being paid some $50 million they’re owed.

Holdings Acquisition Co. is made up of Chicago real-estate billionaire Neil Bluhm’s Walton Street Capital, High Pitt Gaming and Detroit businessman Don Barden.

Barden initially won the license and planned to finance the casino with borrowed money. But he was unable to get enough from banks and investors following mortgage-lending losses. He defaulted on a $200 million bridge loan and began searching for investors.