A spokesman for Bluhm's group tells GlobeSt.com thatconstruction on the casino, which began last December, halted July1 after developer PITG Gaming LLC defaulted on a $200-millionbridge loan. The default capped a series of financial setbacks onthe project that began with rising construction costs anddifficulty in obtaining refinancing, according to a news releasefrom PGCB.

PITG, led by Don Barden, signed an agreement two weeks latergiving 75% control of the project to the newly formed PittsburghGaming Investors, a group led by Walton Street, Bluhm and entitiescontrolled by Greg Carlin, CEO of Philadelphia-based SugarHouseGaming, and Ira Lubert, co-founder of Independence CapitalPartners. Barden's investor group retains 20% ownership, while apair of Detroit pension funds owns 5%. Carlin will now serve as CEOof Pittsburgh Gaming Holdings, and will serve on the managementcommittee of Holdings Acquisition Co. with Bluhm and Barden, CEO ofDetroit-based Majestic Star Casino LLC.

Under the restructuring, a Walton Street investment fund willprovide $205 million of equity, up from the $120-million infusionoriginally announced, the spokesman says. According to apresentation made before the PGCB on Thursday, the new cashconsists of $120 million of junior preferred equity and $85 millionof senior preferred equity.