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FGMGQ: Plan of bankruptcy effective. All shares cancelled.
http://www.otcbb.com/asp/dailylist_detail.asp?d=08/06/2014&mkt_ctg=NON-OTCBB
nsomniyak
Not sure how much this will amount to in terms of stock price per share, but I reckon we should have a pop!!!!
Bidder agrees to buy Casino Miami Jai-Alai for $155 million!
http://www.miamiherald.com/2014/03/25/4018654/bidder-agrees-to-buy-casino-miami.html
By Evan S. Benn The Miami Herald
The main lender behind Miami Jai-Alai’s recent multimillion-dollar expansion and foray into casino gaming agreed at an auction Tuesday to pay $155 million to buy the historic fronton and casino.
A federal judge on Wednesday will decide whether to approve the bid entered by ABC Funding. The equity fund beat out bids from casino operators Mohegan Sun and Penn National Gaming as well as Chicago private-equity firm Z Capital, according to Luis Salazar, an attorney who represented Casino Miami Jai-Alai at Tuesday’s auction at the Biltmore in Coral Gables.
“There was very spirited bidding by all parties,” Salazar said.
The auction came after the casino’s parent company, Florida Gaming Corp., filed for Chapter 11 bankruptcy protection in August.
The filing came after Florida Gaming had agreed to sell Casino Miami Jai-Alai for $130 million, including $15 million in obligations, to a New York-based investment firm that owns casinos in Panama and Curacao. An investment bank later valued the casino as being worth $180 million. The move also came after ABC Funding sued the casino, alleging nonpayment of debt.
The 1926 facility, located at 3500 NW 37th Ave., was once a center of Miami nightlife. But as the fast-paced sport of jai-alai fell out of popularity, so did the fronton’s bottom line.
After the state legalized gambling in 2011, Florida Gaming took out an $87 million loan from ABC Funding to add a 60,000-square-foot casino with 1,000 slot machines, an expanded poker room, video blackjack and more, as well as concert and restaurant facilities. Opened in January 2012, the casino proved to be a boon for business, while jai-alai continued to be a money-vacuum.
Financial statements filed in court showed the fronton’s slot machines deliver $1.1 million in cash to the operation every week, while a top executive testified that running jai-alai matches brings a net loss of about $1 million a year.
Silvermark LLC, the New York group that originally tried to buy Casino Miami Jai-Alai, would be owed a $4 million “breakup” fee from ABC Funding if terms of Tuesday’s auction are approved.
Read more here: http://www.miamiherald.com/2014/03/25/4018654/bidder-agrees-to-buy-casino-miami.html#storylink=cpy
nsomniyak
Auction on March 25th. Judge is reviewing on March 26th so we should know the outcome soon.
There has been a lot of news the last several days....
http://www.law360.com/bankruptcy/articles/519174/settlement-on-credit-bid-ok-d-ahead-of-miami-casino-sale
http://bankruptcynews.dowjones.com/Article?an=DJFDBR0020140318ea3iohoff&cid=32135014&ctype=ts&pid=311&ReturnUrl=http%3a%2f%2fbankruptcynews.dowjones.com%2fArticle%3fan%3dDJFDBR0020140318ea3iohoff%26cid%3d32135014%26ctype%3dts%26pid%3d311
Apparently, their creditor could only use a credit bid of $100 million dollars in debt owed if they want to participate in the auction. The judge ruled that the additional $35 or so million is considered equity, not debt.
If they do not choose to bid, then they are entitled to receive the $100 million owed to them and a portion of the $35 million (depending on the final sale price).
I think this is a good crapshoot. At the very worst, I think this stock will be a clean shell with only 4 million shares outstanding.... (little downside in my opinion).... if another bidder comes into the fray, the shareholders might be able to get some good $$$ (every 4 million dollars is worth $1 in stock price after all). We will see final outcome within a few days.
I'm only sitting on 20k shares so this is not a huge gamble for me.
Casino Miami Jai-Alai Bankruptcy Sale Procedures OK'd By Nathan Hale
Law360, Miami (December 18, 2013, 7:04 PM ET) -- With an agreement in place for operator Silvermark LLC to serve as a stalking horse bidder, a Florida bankruptcy judge worked through a few final issues Wednesday before approving sale procedures for a planned March 2014 auction of Casino Miami Jai-Alai.
It would be nice if this firm, or others, would bid on FGMGQ...as far as I know, no bidders, yet, for FGMGQ.
Press Release: Gaming and Leisure Properties Announces Acquisition of the Real Estate Assets Related to the Casino Queen in East St. Louis for $140 Million 12/09 07:30 AM
Gaming and Leisure Properties Announces Acquisition of the Real Estate Assets Related to the Casino Queen in East St. Louis for $140 Million
WYOMISSING, Pa., Dec. 9, 2013 (GLOBE NEWSWIRE) -- Gaming and Leisure Properties, Inc. (GLPI:$47.26,00$0.77,001.66%) today announced that it has entered into an agreement to acquire the real estate assets associated with the Casino Queen in East St. Louis, Illinois. The casino and adjacent land cover 78 +/- acres and include a 157 room hotel, a 38,000 square foot casino with 27 gaming tables and 1,155 slot machines, a fine dining steakhouse, a buffet, a quick service deli, a sports bar/entertainment venue, and full service RV park. The resort, built in 2007, had approximately 1.7 million guest visits during the past twelve months.
Gaming and Leisure Properties, Inc. (GLPI:$47.26,00$0.77,001.66%) has agreed to acquire the real property for $140 million. In addition, GLPI will provide Casino Queen with a $43 million term loan, which will completely refinance and retire all or substantially all of Casino Queen's outstanding long-term debt obligations. As a condition of the purchase, GLPI will lease the property back to Casino Queen on a triple net basis for approximately $14 million per year. The term loan has a five year maturity at an interest rate of 7%. The initial lease term is 15 years, with an option to renew for four successive five year terms. The transaction will be funded with the existing revolver and is expected to contribute approximately $ 0.13 to annual AFFO per share, prior to the impact of the purge of historical earnings and profits. The transaction is subject to and requires approval from the Illinois Gaming Board and is expected to close by the end of the first quarter of 2014.
Peter M. Carlino, Chairman and CEO of Gaming and Leisure Properties, Inc. (GLPI:$47.26,00$0.77,001.66%) , commented, "This is our first acquisition as a standalone company and is representative of the robust opportunities that exist in the gaming asset markets that our company is targeting. Gaming and Leisure Properties (GLPI:$47.26,00$0.77,001.66%) seeks to become a consolidator of choice and a leading provider of unique financing solutions for highly levered regional gaming operators. The Casino Queen adds a newly constructed asset with strong market share to our portfolio and further diversifies our operating partners, while strengthening our cash flow."
Jeff Watson, President of Casino Queen, commented, "This transaction offers us the opportunity to reorganize our capital structure, with a long-term solution that provides stability for our employee-owners. Further, by unlocking the value in our real estate assets, we are able to focus on efficiently operating our business in a less restrictive, asset-lite environment."
About Gaming and Leisure Properties (GLPI:$47.26,00$0.77,001.66%)
Gaming and Leisure Properties, Inc. (GLPI:$47.26,00$0.77,001.66%) is a Pennsylvania corporation that was incorporated on February 13, 2013 as a wholly- owned subsidiary of Penn National Gaming, Inc. ("Penn"). On November 1, 2013, Penn completed the spin-off of GLPI by distributing the common stock it held in GLPI to Penn's shareholders. GLPI holds directly or indirectly substantially all of the assets and liabilities associated with the real property interests and real estate development business related to Penn's gaming operations, as well as the assets and liabilities of Louisiana Casino Cruises, Inc. ("Hollywood Casino Baton Rouge") and Penn Cecil Maryland, Inc. ("Hollywood Casino Perryville"). Penn continues to hold all of its other historical operations, assets and liabilities. Currently, GLPI's sole tenant is Penn Tenant, LLC ("Penn Tenant"), a subsidiary of Penn, which leases the GLPI assets related to the business of Penn other than the Hollywood Casino Baton Rouge and Hollywood Casino Perryville pursuant to a master lease agreement.
GLPI intends to elect to be taxed as a real estate investment trust ("REIT") for United States federal income tax purposes commencing with its taxable year beginning on January 1, 2014. GLPI's primary business consists of acquiring, financing, and owning real estate property to be leased to gaming operators in " triple net" lease arrangements, pursuant to which the tenant is responsible for all facility maintenance, insurance required in connection with the leased properties and the business conducted on the leased properties, taxes levied on or with respect to the leased properties and all utilities and other services necessary or appropriate for the leased properties and the business conducted on the leased properties. Following its qualification as a REIT, GLPI expects to be the first gaming-focused REIT, and expects to grow its portfolio by aggressively pursuing opportunities to acquire additional gaming facilities to lease to gaming operators, which may include Penn. GLPI also anticipates diversifying its portfolio over time, including by acquiring properties outside the gaming industry to lease to third parties.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the use of forward looking terminology such as "expects," "believes," "estimates," "expects," " intends," "may," "will," "should" or "anticipates" or the negative or other variation of these or similar words, or by discussions of future events, strategies or risks and uncertainties. Such forward looking statements are inherently subject to risks, uncertainties and assumptions about GLPI and its subsidiaries, including risks related to the following: the ability to receive, or delays in obtaining, the regulatory approvals required to own and/or operate its properties, or other delays or impediments to completing GLPI's planned acquisitions or projects, including necessary approval from the Illinois Gaming Board; GLPI's ability to qualify as a REIT or maintain its status as a REIT; the ability and willingness of GLPI's tenants, operators and other third parties to meet and/or perform their obligations under their respective contractual arrangements with GLPI, including, in some cases, their obligations to indemnify, defend and hold GLPI harmless from and against various claims, litigation and liabilities; the ability of GLPI's tenants and operators to maintain the financial strength and liquidity necessary to satisfy their respective obligations and liabilities to other third parties, including without limitation obligations under their existing credit facilities and other indebtedness; the ability of GLPI's tenants and operators to comply with laws, rules and regulations in the operation of its properties, to deliver high quality services, to attract and retain qualified personnel and to attract customers; the availability of and the ability to identify suitable and attractive acquisition and development opportunities and the ability to acquire and lease those properties on favorable terms; the ability to diversify into different businesses, such as hotels, entertainment facilities and office space; the access to debt and equity capital markets; fluctuating interest rates; the availability of qualified personnel and GLPI's ability to retain its key management personnel; GLPI's duty to indemnify Penn in certain circumstances if the spin-off fails to be tax-free; changes in the U.S. tax law and other state, federal or local laws, whether or not specific to REITs or to the gaming or lodging industries; changes in accounting standards; the impact of weather events or conditions, natural disasters, acts of terrorism and other international hostilities, war or political instability; other risks inherent in the real estate business, including potential liability relating to environmental matters and illiquidity of real estate investments; and other factors described in GLPI's Prospectus on Form S-11 filed on October 4, 2013, subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission (the "SEC"). All subsequent written and oral forward looking statements attributable to GLPI or persons acting on GLPI's behalf are expressly qualified in their entirety by the cautionary statements included in this press release. GLPI undertakes no obligation to publicly update or revise any forward looking statements contained or incorporated by reference herein, whether as a result of new information, future events or otherwise, except as required by law. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this press release may not occur.
Non-GAAP Performance Measures
This news release contains references to "EBITDA," which is a non-GAAP performance measure. We believe this non-GAAP performance measures may provide additional meaningful comparisons between current results and results in prior periods. Non-GAAP performance measures should be viewed in addition to, and not as an alternative for, the Company's reported results under accounting principles generally accepted in the United States. Further information regarding these measures and reconciliation to GAAP may be found in Gaming & Leisure Properties, Inc.'s (GLPI:$47.26,00$0.77,001.66%) SEC filings on the SEC's website.
CONTACT: Investor Relations - Gaming and Leisure Properties, Inc. (GLPI:$47.26,00$0.77,001.66%) Brad Cohen
T: 203-682-8211
Email: Brad.Cohen@icrinc.com
Bill Clifford
T: 610-401-2900
Email: BClifford@glpropinc.com
(END) Dow Jones Newswires
12-09-130730ET
Get more news on:SYMBOLS: GLPINEWS TYPE: Corporate Events: Mergers and Acquisitions, Top News, Top Stories: General, Top Stories: Investing, Corporate EventsSECTORS: Consumer Discretionary, Media, Financials, Real Estate Management and Development
An equity committee was "not" formed.
Florida Gaming in Talks to Sell Miami Jai Alai for $115 Million 11/26 12:33 PM
Florida Gaming Centers Inc. is trying again to sell its Miami Jai-Alai facility to Silvermark LLC, which has resumed talks to pay $115 million in cash for the sporting venue and casino.
Silvermark tried to purchase Florida Gaming's (FGMGQ:$0.623,0$0.0001,0.02%) assets earlier this year, offering $115 million in cash and to assume $14 million of the company's liabilities. But the sale never closed after disputes arose with Florida Gaming's (FGMGQ:$0.623,0$0.0001,0.02%) lenders, led by ABC Funding LLC, prompting Florida Gaming (FGMGQ:$0.623,0$0.0001,0.02%) to seek Chapter 11 protection in August.
Now, Silvermark LLC, which has ties to New York investment firm the Andalex Group, is in talks to serve as leading bidder in a bankruptcy sale process that could culminate in a March auction, according to court papers filed Monday.
Silvermark is currently offering to pay $115 million in cash and assume an unspecified amount of liabilities, although Florida Gaming (FGMGQ:$0.623,0$0.0001,0.02%) said that is subject to continuing negotiations. Those talks also envision a $4 million breakup fee for Silvermark if it loses to a rival bidder.
If the Silvermark bid isn't finalized, Florida Gaming (FGMGQ:$0.623,0$0.0001,0.02%) said it would seek another stalking horse to lead off the bidding at an auction it wants to hold on March 25.
The auction proposal would allow Florida Gaming's (FGMGQ:$0.623,0$0.0001,0.02%) lenders to credit bid the more than $120 million they're owed, which means they could offer to forgive the debt in exchange for the assets rather than pay cash.
Florida Gaming's (FGMGQ:$0.623,0$0.0001,0.02%) request is subject to the approval of the U.S. Bankruptcy Court in Miami, which will take up the matter at a Dec. 11 hearing.
Miami Jai-Alai features prominently in Miami's history, hosting games for nearly 90 years and making appearances on television shows like "Miami Vice" and travel guru Anthony Bourdain's "The Layover."
The facility, where Jimi Hendrix once performed, added a casino several years ago as jai-alai's popularity waned.
Since adding the casino, Florida Gaming (FGMGQ:$0.623,0$0.0001,0.02%) says it has been a success in all aspects but one--its relationship with its lenders, who put up the $87 million needed to construct the gambling facility and last year sued to foreclose on the property.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Jacqueline Palank at jacqueline.palank@wsj.com.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
Miami Jai-Alai Seeks to Keep Grip on Bankruptcy Case
11/21 01:36 PM
Florida Gaming Centers Inc. is seeking to retain sole control of Miami Jai- Alai's Chapter 11 case as it moves to sell the historic South Florida sporting venue and casino at a bankruptcy auction next year.
Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) , Miami Jai-Alai's owner, has agreed to put the casino on the auction block with a proposed sale slated to occur by March of next year. The company is seeking a 120-day extension of its exclusive right to file a Chapter 11 plan in order "to facilitate an orderly, efficient and cost-effective plan process" for the benefit of all creditors and parties in interest, according to a Tuesday filing in U.S. Bankruptcy Court in Miami.
Exclusive periods protect a firm restructuring under Chapter 11 from outsiders who may look to interfere with the reorganization process for their own benefit. Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) is seeking an extension through April 16 to file a plan. Its sole control of its bankruptcy case is set to end Dec. 17, and a hearing to approve the sale will occur by March 31, 2014.
Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) is suing a group of its lenders, alleging they conspired to take over the casino in an "unlawful" and "usurious" loan-to-own scheme, and doesn't want to face the possibility of the lenders getting control of the case.
The lenders in turn have accused Florida Gaming's (FGMGQ:$0.68,00$0.0595,9.59%) owners--William Bennett Collett Jr., his father and other family members--of mismanagement and improper self-dealing.
Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) filed for Chapter 11 protection in September, after an out-of- court deal to sell its assets to New York-based casino operator Silvermark LLC, for about $130 million, failed to close. That would have been enough to pay off lenders led by ABC Funding LLC the $127 million they are owed. The lenders, who include affiliates of investment firms Summit Partners and Canyon Capital Advisors, had sued Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) seeking to foreclose on Miami Jai-Alai and its recently opened casino.
Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) blamed delays caused by the lenders for the failure of the deal to close. According to the company, the lenders aren't actually interested in recovering what they are owed, but want Miami Jai-Alai and its lucrative casino for themselves. A recent estimate by investment bank Jefferies pegged the value of Miami Jai-Alai at more than $180 million, according to court papers.
The lenders say Florida Gaming (FGMGQ:$0.68,00$0.0595,9.59%) doesn't like the deal it cut with Silvermark and is using the lender dispute to get more money at a bankruptcy auction.
The $180 million valuation represents a significant turnaround for a venue and a sport that was all but left for dead a few years ago. The reason for the recovery isn't jai-alai, however, but a 60,000-square-foot casino that opened last year.
Jai-alai is still played six days a week at the Miami fronton, but revenue from betting on the sport provides just a fraction of Florida Gaming's (FGMGQ:$0.68,00$0.0595,9.59%) overall handle, or take. In 2012, Florida Gaming's (FGMGQ:$0.68,00$0.0595,9.59%) revenue surged to $45.5 million from $7.8 million a year before. In the first six months of this year, the casino alone brought in more than $39 million.
Miami Jai-Alai opened in 1926. Over the years, the venue hosted everything from championship fights to junior women's club meetings. The Allman Brothers Band, Aerosmith and Thin Lizzy played "the High," as it was known, in the 1970s. The fronton also had a starring role in television episodes of "Miami Vice" and Anthony Bourdain's travel show.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com)
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
Lately, it is being manipulated "down." Every time a trade goes through, someone smacks the bid for 100 sh to keep the bid low. At the same time, you can see that some are "stepping in front of" others on the bid (e.g., fractional pennies), so someone wants to accumulate, but they want the shares cheap and are patient in this accumulation effort. Smart.
The owners of Miami Jai-Alai are suing a group of lenders, alleging they conspired to take over the historic South Florida sporting venue and casino in an "unlawful" and "usurious" loan-to-own scheme.
As a result of these actions, Florida Gaming Corp. (FGMGQ:$0.70,00$0.0798,12.87%) , which owns Miami Jai-Alai, has requested that the U.S. Bankruptcy Court in Miami void the $127 million in debt held by the group.
"The Credit Agreement, when combined with the Warrant Agreement, provided ABC Funding a clear path to ultimately wrest control of the Miami Jai-Alai Casino from its owners," the company said in documents filed with the U.S. Bankruptcy Court in Miami, "and a vehicle through which ABC Funding could charge criminally usurious interest rates." ABC Funding is representing the lender group.
According to court documents, Florida Gaming Corp. (FGMGQ:$0.70,00$0.0798,12.87%) took out an $87 million loan in 2011 to expand Miami Jai-Alai after the Florida voters approved a measure to allow slot machines and other gambling.
The company said this effort was successful, and by January 2012, Miami Jai- Alai was refurbished--it included a 60,000-square-foot casino with slots, a poker room, electronic blackjack and roulette, which hosts live events including concerts and boxing and has a restaurant and three bars--and profitable.
Still, as early as June 2011, the lenders began to declare events of default-- in previously filed court documents the lenders said that Florida Gaming (FGMGQ:$0.70,00$0.0798,12.87%) failed to make principal payments--and in September 2012 ABC Funding filed a foreclosure action on the facility.
During the foreclosure action, Florida Gaming (FGMGQ:$0.70,00$0.0798,12.87%) was attempting to sell its assets. The lenders stonewalled a sale to Silvermark LLC for $114 million in cash and $15 million in assumed liabilities, which was enough to fully repay the lenders, the company said. That deal fell apart, causing Florida Gaming (FGMGQ:$0.70,00$0.0798,12.87%) to file for Chapter 11 bankruptcy in August.
Florida Gaming's (FGMGQ:$0.70,00$0.0798,12.87%) interest payments on the loan had climbed to $45,000 a day, a rate of 33%, which Florida Gaming (FGMGQ:$0.70,00$0.0798,12.87%) called "astounding and criminally usurious."
Now Florida Gaming (FGMGQ:$0.70,00$0.0798,12.87%) says the credit facility was set up illegally to ensure that Miami Jai-Alai would default, giving those lenders ownership or control over the facility, according to court documents.
A lawyer for the lenders didn't respond to request for comment Monday.
Miami Jai-Alai opened in 1926 and had for nearly a century offered live Jai- alai matches and a few poker games. Jai-alai is a blazingly fast handball-like game played on a walled court, or fronton, with a rock-hard ball, or "pelota," and a claw-like wicker basket called a "cesta." The game is said to have originated in Spain's Basque region and was brought to Florida by Cuban immigrants, where it was first played professionally in the 1920s.
The Miami venue has hosted everything from championship fights to junior women's club meetings. The Allman Brothers Band, Aerosmith and Thin Lizzy played "the High," as it was known, in the 1970s. The fronton also had a starring role in television episodes of "Miami Vice" and Anthony Bourdain's travel show.
(Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com
--Patrick Fitzgerald contributed to this article
Write to Stephanie Gleason at stephanie.gleason@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
11-11-131402ET
Copyright (c) 2013 Dow Jones & Company, Inc.
Miami Jai-Alai Owners Sue to Erase $127 Million in Debt 11/11 02:02 PM
From Exhibit B:
...after all obligations are paid, approximately $37.2 million would be available for payment to Florida Gaming's shareholders if Centers were sold for a price reflecting its true value...making each share of stock potentially worth more than $9.00 per share...
Latest filing suggests a March 2014 sale.
The Debtor has a website and will be posting notices...the Debtor’s counsel, is at Louis Salazar at Salazar Jackson...the creditors; committee attorney, is Glenn Moses at Genovese Joblove Batista.
Thank you for the post. I bought several thousand shares today. Filings suggest $9 per share is possible and $0.50 per share is the floor.
FGMGQ may be worth north of $5
http://www.bloomberg.com/news/2013-08-20/jai-alai-operator-seeks-bankruptcy-after-lender-dispute.html?cmpid=yhoo
Jefferies valued the company at $50 million more than what Silvermark LLC was going to pay to acquire them ($180 million versus $130 million). The total shares outstanding even if you convert the preferred stock is 7 million, which would place the current stock price at $7+ if they are able to demand such a premium. Company is profitable-- last quarter they showed an outrageous operating profit of $4 million.
Just because a stock has a Q at the end of it and is going through bankrupcty does not mean it is worthless. General Growth Properties went through bankruptcy had a Q on it, and ended up running from $1 to $20.
Jai-Alai Operator Seeks Bankruptcy After Lender Dispute
By Michael Bathon - Aug 20, 2013 1:12 PM CT
Florida Gaming Centers Inc., which operates a casino and jai-alai frontons in Miami, sought bankruptcy protection after a dispute with its lender.
The company listed debt of $138.3 million and assets of $180 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Miami. Its parent, Florida Gaming Corp. (FGMG), and two other affiliates also sought court protection.
Florida Gaming opened a Miami casino in January 2012 to bolster its revenue as the fading popularity of jai-alai, often considered the world’s fastest sport with balls whizzing around sometimes faster than 180 miles per hour, threatened its viability, according to court papers.
The company “is now thriving and is a success by every measure but one: its relationship with its lender,” Daniel Licciardi, an executive vice president, said in court papers. The bankruptcy filing was “brought about by ABC Funding’s relentless effort to wrest control of Miami Jai-Alai and the casino,” he said.
Florida Gaming borrowed $87 million from a syndicate of lenders, led by agent ABC Funding LLC, to repay existing debt and fund the construction of the 60,000-square-foot casino, according to court filings.
Florida Gaming said ABC Funding determined that it was in technical default of the financing agreement and moved to foreclose on its assets. The casino operator said in court papers that it made all required payments.
The casino has more than 1,050 slot machines, a poker room and table games, as well as offering concerts and boxing matches, according to court documents. The company also has a Fort Pierce, Florida, location with jai-alai courts and inter-track wagering on horse and dog racing.
The company previously negotiated a sale of virtually all its assets to fellow casino operator Silvermark LLC for $115 million in cash and $14 million in assumed liabilities, court documents show. A provision in the financing agreement required Florida Gaming to make an additional payment to the lender if the assets are sold to third party. Jefferies LLC was hired to determine that amount, about $26.8 million, and valued the company at more than $180 million.
Florida Gaming said in court papers that the lender delayed the sale in an attempt to get more money and interest and to take ownership of the assets.
‘Best Avenue’
After the sale to Silvermark unraveled, the casino operator decided the bankruptcy filing was the “best avenue to realize and maximize the residual equity in Florida Gaming Centers Inc. -- which may exceed $50 million -- for the benefit of its creditors, shareholders” and other parties, according to court documents.
The company says on its website that it’s the world’s largest jai-alai operator and has been hosting matches since 1926.
The case is In re Florida Gaming Centers Inc., 13-bk-29597, U.S. Bankruptcy Court, Southern District of Florida (Miami).
To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net
What's the word on this stock?? Up 85% today.. Apparently making its way out of bankruptcy and looking to sell? Let's get some info!
FGMG changed to FGMGQ: Bankruptcy: ***NOTE: clear manipulation as the stock rose 90 % today to .57 cents.
http://www.otcbb.com/asp/dailylist_detail.asp?d=08/21/2013&mkt_ctg=NON-OTCBB
WTF... Why is this stock up 90% Can someone please explain. ???????
this is the bigest joke every going under soon
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