Centaur LLC, the embattled Indiana-based casino operator, is sending out confusing signals about a long-stalled racetrack and casino project in Lawrence County, but there may be method in its madness.

The company asked the state Harness Racing Commission on Wednesday for another two-year extension of its racing license, which was originally granted in 2007.

Centaur said it needed more time to build the $425 million racetrack-casino on a 250-acre site west of New Castle near the Ohio line. The new extension, if granted, would further delay a project whose groundbreaking is already running three years behind schedule.

But Centaur painted a vastly different picture of the situation last week, indicating it could soon wash its hands of the project. That word came in a newly revised bankruptcy reorganization plan filed in U.S. Bankruptcy Court's Delaware District.

When -- and if -- the company's two Pennsylvania subsidiaries, Valley View Downs LP and Centaur PA, emerge from the Chapter 11 bankruptcy reorganization process, parent company Centaur LLC hopes to sell its partnership interests in the Pennsylvania companies to a bidder who will buy the project.

Or, Centaur said, it would "alternatively withdraw [the] Pennsylvania Gaming License Application" still pending before the state Gaming Control Board.

State Sen. John Wozniak, D-Cambria, said Wednesday that he hoped the Harness Racing Commission doesn't grant this new request for a two-year extension.

He said Centaur has had long enough to get its act together and build the racetrack-casino, which Mr. Wozniak said was needed to maximize the amount of slots revenue that goes to reduce Pennsylvania homeowners' property taxes.

He said he hadn't heard about Centaur possibly selling its interest in the project. By seeking this new two-year license extension, he contended: "They are trying to buy time. They are trying to make this property as valuable as possible, so they can sell it and make a couple bucks back. They made a bad business decision [by competing to build the racetrack] but that's not the fault of Pennsylvania taxpayers.

"We should move forward with someone who can make this project happen."

Mr. Wozniak has a bill in the Legislature to convert the racetrack-casino license to a stand-alone casino license and put it up for grabs to anyone, anywhere in Pennsylvania.

After Centaur got its racing license from the Harness Racing Commission, it applied to the state Gaming Control Board for a slots license; but that panel is still waiting for further financial information from Centaur before proceeding.

If either of the scenarios outlined in Centaur's latest bankruptcy filing comes to fruition, Centaur will be effectively pulling out of Lawrence County.

For years, Centaur has been telling gaming regulators that it remains committed to building the Valley View Downs racetrack-casino, even though it was having trouble raising the money to do so.

But the filing last Thursday is an explicit, written admission on the part of Centaur LLC that the Valley View Downs project could also be auctioned off, or scrapped entirely.

That possibility has been discussed by others since at least 2008, when financial analysts speculated that Centaur would have to sell its Valley View property in order to pay off its mounting debt. One published estimate set the Valley View properties' value at $100 million or more.

A Centaur spokeswoman said Tuesday that the project could still remain in Lawrence County, even if Centaur doesn't.

"It continues to be our intent to stay involved in the project through either a joint venture or securing additional primary investors," said Susan Kilkenny. "Through the restructuring process, we must consider all possible strategies to ensure maximum value [for] stakeholders. Our intent is to ensure the development of the project in Lawrence County at the current site as approved by regulators."

Centaur LLC and its Pennsylvania subsidiaries, Valley View Downs LP and Centaur PA, have all filed for bankruptcy protection in the last year.

The revised reorganization plan has to be approved by the court and company creditors. The new Centaur, should it emerge from the bankruptcy, would have an estimated equity value between $30 million and $90 million.

Under the new plan, primary first-lien lenders would recover about 83 percent of what they've invested, through newly issued stock and debt. Second-lien and unsecured creditors would recover much less, which is why some have objected to the bankruptcy reorganization and are calling for Centaur's liquidation under Chapter 7 of the bankruptcy code.

If Centaur is able to sell its reorganized Valley View Downs, the racetrack-casino could remain in Lawrence County, if the new owners receive the blessing of the state Harness Racing Commission. The commission will meet Friday at The Meadows racetrack-casino in Washington County, and the Centaur request for another two-year extension could come up.

But commission spokesman Justin Fleming said there was no deadline for the panel to make a decision.

Under its first extension, granted two years ago, Centaur was supposed to have live racing at its site by Sept. 5, 2010.

Dan Vogler, a Lawrence County commissioner, had wanted Centaur to seek another extension. He said: "We're hopeful that Centaur can make this work. But if it has to be someone else, well, we're hopeful that someone else can make it work."

The Valley View Downs project was put in Lawrence County under a 2007 compromise that took the project out of Beaver County. But in order to operate a casino, Centaur first needs a license from the Gaming Control Board, a license which costs $50 million.

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