Gaming operator Lucky Bucks LLC filed for Chapter 11 bankruptcy in Delaware, listing liabilities up to ten times the amount of its assets.

The Trive Capital-backed company estimated it has assets of as much as $50,000 and liabilities in the range of $100 million and $500 million, according to the filing. It expects to have funds available for distribution to unsecured creditors, it said.

Lucky Bucks operates slot machines in convenience stores and gas stations in Georgia. Its performance weakened as the Georgia Lottery Commission cracked down on locations that get too much of their revenue from the machines. A higher rate environment also weighed on the company’s debt burden and consumer discretionary spending.

Through a restructuring support agreement, the company — among other things — seeks a potential $20.5 million debtor-in-possession senior secured financing commitment, according to the filing. Earlier this year, the company received short-term financing from Trive as it explored restructuring options with advisers M3 Partners, Evercore and Milbank, Bloomberg previously reported.

Some of the company’s machines have been taken out of operation due to increased regulatory enforcement, hurting its financial performance, according to Moody’s Investors Service. The ratings firm downgraded Lucky Bucks to Caa3 in March, citing expectations of high debt relative to earnings and a covenant breach.

Case number: 1:23-bk-10756, click here for link to docket