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.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.