Grand Station Casino’s parent company will still hold the license to operate the facility after its foreclosure sale on Monday but layoffs loom for more than 200 employees if a deal isn’t worked out between the casino and its creditors, according to a letter sent to Mayor Paul Winfield from the casino’s lawyers.

The letter said Delta Investments and Development LLC might close the downtown gaming hall as early as Wednesday if the company can’t satisfy a $3 million loan from Bally Gaming Inc. secured last May to finance new equipment, information technology and other renovations.

Additionally, it said company officials and Winfield will meet at 8:30 a.m. Friday to discuss the situation.

“We have been diligently negotiating with potential purchasers, vendors, creditors and the Mississippi Gaming Commission in an effort to allow the casino to remain in operation,” said Nichole Andrighetti, general counsel for the firm who signed the letter, which contains a labor force breakdown by department — from food and beverage to valet — that totals 211 workers. “We have just received notice from the Mississippi Gaming Commission that absent an agreement on acceptable terms for continued operation, the company must begin to close the facility no later than March 28, 2012.”

South Carolina-based Delta is $491,837.50 in arrears on the loan, covering five months of payments since Sept. 1, plus $18,539.63 in legal costs.

Winfield said he was notified of the company’s pending move because of the city’s unique “investment” in the facility, namely the lease between the city and the casino for 2.95 acres of City Front.

“It does concern me greatly,” Winfield said when reached Wednesday. “I’m optimistic they can overcome these issues.”

Under the agreement, the city was to receive about $562,940 a year plus 1.5 percent of the casino’s net revenues until Oct. 13, 2033. Termination fees of $450,000 would kick in if the casino closed. The agreement has been transferred to each owner since the casino opened as Harrah’s in 1993. The city has received about $10.1 million during that time, though delinquencies on the payments run “a few hundred thousand dollars,” Winfield said.

In the letter, positions eyed for terminations include 41 employees in food and beverage, 34 in table games, 28 in security, 21 in slot operations, 16 in cage/credit/collections and a combined 71 in surveillance, accounting and 16 other departments.

Conceivably, the company could continue to hold the license past Monday’s 11 a.m. sale on the courthouse steps, but working out a deal with Bally is key, said Jay McDaniel, deputy director of the gaming commission.

“(The foreclosure) does not automatically extinguish the license,” McDaniel said, “because it’s on the loan and the barge, not on their gaming operation.”

Any firm interested in buying an existing casino or developing one in Mississippi along the Mississippi River or Gulf of Mexico must apply for a license from the commission, the state’s regulatory authority for the gaming industry.

No item related to Grand Station appears on the commission’s next agenda. No complete applications for its license have been considered by the commission, though an “unsolicited offer” announced last week by New Orleans area real estate developer Kenneth W. Bickford to buy Grand Station Hotel mentions Desoto Island Inc. has a potential buyer. No such company is incorporated in Louisiana, Mississippi or Alabama.

Bickford said the offer is “in the millions” but did not specify a sale price, which, if realized, would convert the hotel into a luxury condo and marina resort.

Harrah’s sold the casino and hotel to Columbia Sussex, which renamed it Horizon. Tropicana Entertainment, which was part of Columbia Sussex, took over the former Horizon’s operations and tried unsuccessfully to sell the casino in 2007. In 2010, Delta bought the casino for $3.25 million in cash plus liabilities, one of which is the lease with the city.