Monarch Casino & Resort, Inc. (Nasdaq: MCRI) (the "Company"), owner of the Atlantis Casino Resort in Reno, Nevada, announced today that through a wholly-owned subsidiary, Golden Town, Inc., it has acquired 100% of the equity interest of LLH Gaming, Inc. and its affiliates ("LLH"). LLH is the party to a Purchase Agreement for the purchase by LLH of the Fitzgerald’s Reno Casino Hotel located in downtown Reno, Nevada ("Fitzgerald’s Reno"). LLH sought protection under Chapter 11 of the United States Bankruptcy Code on December 29, 2005, just prior to the expiration date of LLH’s Purchase Agreement for Fitzgerald’s Reno.
The Company intends to cause LLH to complete the purchase of Fitzgerald’s Reno at an estimated cost of $11,000,000 plus additional transaction costs and to cause the LLH bankruptcy case to be dismissed. However, the purchase of Fitzgerald’s Reno is subject to several issues and contingencies, any of which could prevent or delay the successful completion of the purchase.
Because of the significant contingencies and uncertainties, there is no assurance that Monarch’s subsidiary will consummate the purchase of Fitzgerald’s Reno.
Fitzgerald’s Reno is an approximately 351-room hotel with approximately 27,000 square feet of gaming space and three restaurants located in the central business district of downtown Reno, and is within walking distance of the National Bowling Stadium and other downtown attractions.
A United States Bankruptcy Court approved the Fitzgerald’s Reno Plan of Reorganization on May 5, 2003. The Fitzgerald’s Reno bankruptcy debtors surrendered their gaming license in August 2003, and since that date, a court appointed supervisor has operated Fitzgerald’s Reno.