Owner of Tunica casino emerges from bankruptcy

(AP) - Majestic Star Casino, which owns Fitzgeralds Casino Hotel in Robinsonville, Miss., has emerged from Chapter 11 bankruptcy reorganization.

The Las Vegas company said Thursday that it had eliminated more than $500 million in debt. The company is now owned by former lenders, with Minnesota-based Wayzata Investment Partners the largest shareholder.

Fitzgeralds, 1 of 9 casinos in Tunica County, had 666 employees at Sept. 30.

Majestic Star also owns two casinos with that name in Gary, Ind., and a Fitzgeralds casino in Black Hawk, Colo. The company filed for bankruptcy in November 2009, with debts of $771 million versus assets of $402 million, citing the recession and increased competition.

Another company recently gave Resorts and Bally's casinos in Tunica to lenders to save a casino in Atlantic City, N.J.

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