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Bally's Corp. issues going concern warning as company faces substantial doubt regarding its ability to meet lender requirements

Bally's Corp. issued a regulatory filing on Friday signaling "substantial doubt" regarding its ability to continue as a going concern. The company warned that it may lack sufficient cash to satisfy its lenders over the next 12 months, a disclosure that caused Bally's Corp. stock to fall 26% on Monday. Despite the warning, Robeson Reeves, the Chief Executive Officer of Bally's Corp., remains optimistic about the company's progress. The administration of the company maintains that the disclosure is a technical accounting analysis and does not change the status of the Chicago casino construction, which is scheduled to open in early 2027. The company is currently exploring several financing alternatives, including asset monetization, an equity sale, and debt financing, to strengthen its liquidity. While some City Council members argue that the company's heavy debt load is the primary reason for slowing construction, Bally's Corp. officials stated that the decision to pause ancillary work was a separate issue caused by the legalization of video gambling terminals.

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