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Bluhm Testifies Before Pa. Senate Committee

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Jul 24, 2008 2:32 pm US/Eastern

Bluhm Testifies Before Pa. Senate Committee

Reporting
Jon Delano
HARRISBURG (KDKA) ― Casino investor Neil Bluhm faced some tough questions from lawmakers today as he testified in front of the Pennsylvania Senate committee.

During the testimony, many of the questions focused on the financing behind the arrangement to construct the casino on the North Shore.

Meanwhile, KDKA's Jon Delano reports that Bluhm's group, The Walton Street Capital Group, said today that they are going to put another $50 million of equity into the project, which will bring the number up to $170 million.

But questions remain over whether the deal can get approved by the Gaming Board in time for development to move forward.

At the hearing, Bluhm warned that unless the Gaming Board approves the deal by July 30th, there could be problems.

"You have a situation here where you have a project that is in default of the lenders. The bridge lenders have sent notice of default and have in fact sent notice of foreclosure, which means that they would proceed to sell the property at a foreclosure sale," said Bluhm. "They threatened that, and I have been present when they made such threats. And I think I filed legal documents to that effect."

The bottom line is that if there is no deal from this group, then there could be a four or five year delay in casino development.

The hearing continues this afternoon in Harrisburg.

Stay with KDKA for more on this developing story.

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