U.S. Bank will file a notice of default against Carson Station on Monday.
Clark Russell confirmed Friday that the hotel/casino is in default on its $2.6 million loan from the bank but said the filing won't cause any problems with the operation of Carson Station. He said there will be no layoffs or cutbacks in the business.
"We're having a conflict with the bank in terms of our loan and they have decided to file a notice of default, which they're going to file on Monday," he said.
Russell, who has owned Carson Station since 1987, said he wanted to make the announcement ahead of Monday's default filing to head off any concerns among his employees or in the community.
"Our company's assets far exceed our liabilities so this action by the bank will not affect our operation whatsoever," he said. "We're open for business as usual. We have no financial difficulties. We just have to work things out with the bank, get our attorneys together with their attorneys."
The recession more than a year ago forced him to close down the Station Grill across Carson Street from Carson Station. He also sold Pinon Plaza on Highway 50 to operators of the Gold Dust West casino chain.
"Achieving a positive cash flow during this national recession of the past several years has been difficult, particularly in Nevada's down-trending gaming economy," he said.
Pointing out he has been a U.S. Bank commercial customer for more than 20 years, Russell said he doesn't think the bank would have taken this action a couple of years ago.
"It's a whole different game out there," he said.
But he expressed confidence he would be able to work out any problems with U.S. Bank.
"We have great employees and local customers who continue to remain with us during this recession for which we are most appreciative," he said.
