Florida Gaming Corp.(fka FGMGQ)

[stanley01]

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.