President Casinos, Inc. announced Monday that its subsidiary, President Broadwater Hotel, will emerge from bankruptcy upon agreement to certain terms of a consensual plan of reorganization. The emergence could come as early as November.
The subsidiary had filed for Chapter 11 protection in April 2001. President Broadwater Hotel owns the President Broadwater Resort property in Biloxi, Mississippi, with an adjoining golf course, on a total of approximately 260 acres.
In addition, President Broadwater Hotel owns the marina in which the Company’s Mississippi gaming subsidiary operates its casino.
Key highlights to the consensual reorganization plan include:
”¡ Payment in full of all unsecured creditors upon confirmation of the plan;
”¡ Extension of repayment obligation to June 2005;
”¡ Reductions of various LIBOR based variable interest rates including the lowering of the interest rate floor from 8.75% to 7.75% prior to the maturity of the note;
”¡ Certain discounts for possible early retirement of the debt;
”¡ Agreement not to file for bankruptcy again.
"We are pleased that we have been able to work out a consensual plan that we believe is both equitable and achievable," said John S. Aylsworth, President and Chief Operating Officer. "We believe the maturity extension to June 2005 will enable the Company to fully realize the value of the Biloxi property. We are especially pleased that the plan calls for the payment in full of all of the unsecured vendors who have cooperated with us during this process. With the anticipated November implementation of the plan, we can turn our focus to an overall plan to restructure all of the Company’s obligations."
President Casinos, Inc. owns and operates dockside gaming facilities in Biloxi, Mississippi and in downtown St. Louis, Missouri, north of the Gateway Arch.