Pinnacle To Buy Debt Of Bankrupt Missouri Riverboat Operator
Pinnacle Entertainment Inc. said Monday it agreed with top creditors to buy the outstanding debt of bankrupt Missouri riverboat casino operator President Casinos Inc. for about $62.6 million. If accepted by a bankruptcy court, Pinnacle said it expected to receive much of the distribution of cash at the company of about $29 million, minus $6 million in liabilities accrued after President filed for bankruptcy protection four years ago.
"We're pleased to take this step to facilitate our acquisition of the President Casino St. Louis Riverfront," said Pinnacle chief executive Daniel Lee in a statement.
Las Vegas-based Pinnacle said it expected the deal to close in the second half of the year. In May, it announced it had agreed to buy the riverboat for about $31.5 million.
The President Casino St. Louis Riverfront, a riverboat casino, contains approximately 1,025 slot machines and 30 gaming tables. It is located on the Mississippi River a short distance from Pinnacle's $350 million St. Louis casino project that is under construction.
The riverboat deal needs licensing from the Missouri Gaming Commission and final approval of the debtors' bankruptcy plan by the court.
Las Vegas-based Pinnacle owns and operates casinos in several states, including Nevada, Louisiana, and in Argentina and the Bahamas.
President Casinos, of St. Louis, filed for Chapter 11 protection in 2002. In 2005, the company sold its Biloxi, Miss., hotel and casino for $82 million, leaving the casino operator with only its riverboat operations in St. Louis.
Pinnacle shares rose 30 cents to close at $28.40 on Monday on the New York Stock Exchange. |
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