GameTech International Inc.(fka GMTCQ)

[uyrijasek]

NEWS: Bankruptcy Judge Approves GameTech Sale to Yuri Itkis CFDAY  GMTCQ 

A bankruptcy judge approved the sale of computer bingo terminal maker GameTech International Inc. (GMTCQ) to an investment vehicle controlled by gambling industry veteran Yuri Itkis. Judge Peter J. Walsh of the U.S. Bankruptcy Court in Wilmington, Del., signed off on the $16 million sale to Yuri Itkis Gaming Trust of 1993 following a hearing Thursday. Cash-strapped GameTech filed for bankruptcy after its bank lenders sold their loans to the Las Vegas-based trust. The purchase of the loans, likely at a considerable discount, allowed the trust to credit bid, or exchange the debt, at a bankruptcy auction in order to acquire the assets. Itkis also purchased a key GameTech competitor, FortuNet Inc., in 2010. Founded in 1994, GameTech has two business units: bingo and video-lottery terminals, which make products like traditional slot machines, video poker and spinning-wheel games. The company's bingo machines can be found in 38 states and on Native American land, as well as in Canada and Japan, while its VLTs are in seven states. GameTech, based in Reno, Nev., defaulted on its secured loan in April of this year. Its turnaround consultant resigned and the company failed to file required status reports. The banks granted the company a short lifeline and then sold the debt in June. GameTech reported assets of $27.2 million and debts of $22.9 million in its Chapter 11 petition. (Dow Jones Daily Bankruptcy Review covers news about distressed companies and those under bankruptcy protection. Go to http://dbr.dowjones.com) --Stephanie Gleason contributed to this article. Write to Patrick Fitzgerald at [e-mail]. Subscribe to WSJ: http://online.wsj.com?mod=djnwires (END) Dow Jones Newswires September 28, 2012 14:18 ET (18:18 GMT) Copyright (c) 2012 Dow Jones & Company, Inc. 092812 18:18 -- GMT Story ID: SEP282012_DJB_02wM Keywords: BANKRUPTCY-RELATED FILINGS, CHAPTER 11 BANKRUPTCY FILINGS & CASES, CORPORATE ACTIONS, ALL COMPANY NEWS, CORPORATE RESTRUCTURINGS, CONSUMER CYCLICAL Symbols: CFDAY, GMTCQ