LC Casino Enterprises, which is controlled by Terry Caudill, also owns the Four Queens Hotel & Casino in Downtown Las Vegas.
The transaction is subject to customary conditions, including the approval of the Nevada Gaming Commission and the City of Las Vegas, and purchase price adjustments based on changes in net working capital and certain capital expenditures between execution and closing.
While certain due diligence items remain outstanding, the closing is expected to take place promptly after the receipt of all required regulatory approvals, which the buyer must obtain within six months following the execution of the agreement. The buyer intends to retain the property’s employees after the closing.
MTR purchased Binion’s from an affiliate of Harrah’s Entertainment in March 2004 for us$ 20 million and simultaneously purchased a parcel of land for us$ 1.8 million that was previously ground leased. MTR has disputed a claim that Harrah’s is entitled to a us$ 5 million purchase price increase.
Commenting on the transaction, Edson R Arneault, MTR’s Chairman, President and CEO, stated, "While we have enjoyed working with the employees, the Nevada gaming regulators, and Harrah’s to reopen this legendary property, we believe it is now in the Company’s best interest to concentrate our efforts and resources on our core properties in West Virginia and Pennsylvania. Terry Caudill has a proven track record in Downtown Las Vegas with the Four Queens, and we believe that Binion’s and our employees will benefit from his stewardship."
Rock Creek Capital Advisors is acting as financial advisor to TLC Casino Enterprises, Inc. and Lazard is acting as financial advisor to MTR Gaming Group.
Separately, the company also announced today that on June 26, 2007, it executed an employment agreement for a two-year period commencing as of January 1, 2007 with Kenneth Zern, who was appointed the company’s Chief Accounting Officer effective August 1, 2006. Zern joined the company in June 2004 as the financial controller of Mountaineer Park, a wholly-owned subsidiary of the company.