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GARY | The parent company of Gary's Majestic Star casinos emerged from two years of Chapter 11 bankruptcy reorganization Thursday with new owners and $500 million less debt.

"With the reorganization process behind us, we are better positioned than ever before to provide our visitors and guests with the best hospitality, entertainment and gaming experience possible," said Mike Darley, chief operating officer of Majestic Star Casino LLC.

An investment fund managed by Minnesota-based Wayzata Investment Partners LLC is the largest holder of the reorganized casino company, which also owns the Fitzgeralds casinos in Tunica, Miss., and Black Hawk, Colo.

The Indiana Gaming Commission last month approved an ownership transfer of the two connected Gary casino boats to Wayzata Opportunities Fund II, which was the top Majestic Star creditor when the late Don Barden was owner.

Other lenders to the pre-bankruptcy Majestic Star are also now owners of the new ultimate parent company, Majestic Holdco LLC. 

Wayzata Managing Partner Patrick Halloran told Indiana gaming regulators the firm has begun reviewing Majestic Star operations in Gary but has not decided on future plans.

Chicago attorney Cezar Froelich will help guide the company as a member of the new Majestic Star's board of managers.

Majestic Star filed a voluntary bankruptcy petition Nov. 23, 2009, after failing to pay interest on a business loan.

The company reported $540.5 million in assets and $941.7 million in liabilities, including $630 million in outstanding debt, in a July 2010 court filing.

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