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Pinnacle Acquiring More of President Casinos

LAS VEGAS-On the heels of gaining approval from the US Bankruptcy Court to acquire the St. Louis Riverfront property of President Casinos, Pinnacle cuts a deal with unsecured creditors.

By Brian K. Miller | Updated on July 18, 2006

LAS VEGAS-Pinnacle Entertainment is making moves to acquire more of St. Louis-based President Casinos Inc., which is reorganizing under Chapter 11 of the US Bankruptcy Code. On the heels of a deal for President’s casino property in St. Louis for $31.5 million, locally based Pinnacle has agreed with creditors of the company to make a tender offer for its debt and related claims for a total of approximately $62.6 million.

Pinnacle has offered to acquire all outstanding 13% senior exchange notes and 12% notes for approximately $809.07 in cash per $1,000 in principal amount, along with 100% of all other pre-petition general unsecured claims allowed as of July 12 in an amount not to exceed $2 million. The tentative agreement is with members of the creditors’ committee of unsecured creditors.

President Casinos filed for bankruptcy protection in 2002. The company sold its Biloxi, MS, hotel and casino for $82 million in 2005, leaving only its riverboat operations in St. Louis. In May 2006, Pinnacle cut the deal for President’s St. Louis Riverfront property; scheduled to close later this year, it is contingent upon licensing approval by the Missouri Gaming Commission and final approval of the debtors’ bankruptcy plan by the court.

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