Bankruptcy hearing begins in Pennsylvania which could delay Argo - KTIV News 4 Sioux City IA: News, Weather and Sports

Bankruptcy hearing begins in Pennsylvania which could delay Argosy Casino closure


All of the players in the Woodbury County gaming license legal battle appeared in a courtroom again, Monday. However, this time they met under different circumstances. Monday was the first day of proceeding dealing with Penn National Gaming's decision to file bankruptcy on the part of the Argosy Casino.

Penn National Gaming, the parent company of Argosy's owner, Belle of Sioux City, has brought the matter to court in Reading, Pennsylvania, instead of the Iowa courts.

Penn National's lawyers previously told KTIV they moved to a different state to try to get a better outcome than they do in Iowa.

The Argosy is scheduled to close July first, based on a decision by the Iowa Racing and Gaming Commission.

However, Penn National Gaming, has filed for Chapter 11 bankruptcy, which may postpone the closing as long as the matter is in court.

Courts can't usually automatically overrule the IRGC's decisions, but bankruptcy filings are a federal case, so the judge can temporarily render the IRGC's decision to close the Argosy invalid, until a bankruptcy decision has been made.

Lawyers for the IRGC, the Hard Rock Casino, and the Argosy's former nonprofit partner, Missouri River Historical Development have all expressed their disagreement with the bankruptcy filing.

IRGC lawyers previously told KTIV they'll try to dismiss the matter altogether, because they think there's no grounds for bankruptcy on the part of the Argosy.

But if that fails, they've said they'll try to bring the matter back to the state of Iowa.

The bankruptcy proceedings took all day in Reading, and they still haven't finished.

The matter will be taken up again in court Tuesday.

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