Florida Gaming Corp.(fka FGMGQ)

[TonyJoe1957]

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 [e-mail].
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