Bankruptcy court denies Argosy's request - KTIV News 4 Sioux City IA: News, Weather and Sports

Bankruptcy court denies Argosy's request

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Sioux City's riverboat casino is less than three weeks from its closing date of July 1.

But, in a last ditch effort to stay afloat, the riverboat's owner took its case to bankruptcy court in Pennsylvania.

Wednesday, the court came back with a ruling.

The court in Pennsylvania denied the Argosy's motion to file for Chapter 11 bankruptcy.

This means the earlier ruling by the Iowa Racing and Gaming Commission to close the casino by July 1 remains.

Penn National Gaming, the parent company of Argosy's owner, Belle of Sioux City said they moved to a different state to try and get a better outcome than they have in Iowa.

Courts can't automatically overrule the IRGC's decisions.

But, since this case was taken to federal court in Pennsylvania, the judge could have temporarily rendered the IRGC's decision to close the Argosy invalid, until a bankruptcy decision has been made.

Argosy's spokesperson Karen Bailey released this statement in response to this decision, "We are very disappointed by the decision of the bankruptcy court today, which will deny us the time we were seeking to pursue our legal remedies in Iowa, and may hasten the Argosy's closure and the loss of hundreds of local Sioux City jobs and our more than $100 million investment in the property. We will continue to fight for our legal rights through the Iowa courts to stop the shut down of our facility, which would establish a dangerous precedent for other gaming licensees, and private property owners in general, across Iowa."

KTIV also reached out to representatives from the IRGC and haven't heard back from them at this point.

But, the last time we spoke with them were trying to dismiss the matter altogether, because they thought there were no grounds for bankruptcy on the part of the Argosy.


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