MESQUITE, Nev.--(BUSINESS WIRE)-- Black Gaming, LLC, Mesquite’s largest gaming company, today obtained confirmation of its Plan of Reorganization, paving the way for the Company to emerge from Chapter 11 protection.

“We are extremely pleased with the court’s decision, which clears the way for us to complete our debt restructuring,” said Robert R. Black, Sr., CEO of Black Gaming. Mr. Black continued, “The Plan confirmed today allows us to reduce our debt by more than $143 million and emerge with a more manageable capital structure. Many other gaming companies who have found themselves in similar situations to that of Black Gaming continue to work toward what we have achieved today. It is a testament to the work of our employees, advisors, partners and creditors’ hard work and commitment during this process. Through their collective efforts, Black Gaming will become a stronger organization better positioned to provide our guest the best entertainment value for their dollar.”

The Hon. Bruce A. Markell, of the U.S. Bankruptcy Court for the District of Nevada, confirmed the Plan at a hearing today. More than 98% of the creditors who cast ballots voted in favor of confirmation.

As previously disclosed, Black Gaming reached an agreement on the terms of the Plan with certain creditor groups prior to filing for Chapter 11 protection on March 1, 2010.

Under the terms of the confirmed Plan:

• The Company’s Senior Credit Facility with Wells Fargo Foothill, Inc. will be paid in full.
• The Company’s Senior Secured Noteholders will exchange their notes and claims thereunder for a new credit facility of $62,500,000.
• The Company’s Senior Subordinated Noteholders will receive warrants to purchase equity interests in Reorganized Black Gaming in exchange for their notes and claims.
• To the extent permitted under the Bankruptcy Code, General Unsecured Claims, including vendors, will be paid in cash.
• Anthony Toti, Newport Global Advisors or one of its affiliates, Robert R. Black, Sr. and one or more parties to be designated by Michael Gaughan will contribute cash in excess of $18,250,000 in exchange for 100% of the new equity interests in Reorganized Black Gaming.
• Robert R. Black, Sr. will remain Chief Executive Officer; Anthony Toti will remain Chief Operating Officer; and Sean P. McKay will remain Chief Financial Officer.

About Black Gaming

Black Gaming, LLC, headquartered in Mesquite, Nev., is a holding company and is an owner and operator of three gaming entertainment properties located in Mesquite, Nev.

Forward-Looking Statements

The information in this Press Release contains “forward-looking statements” within the meaning of U.S. federal securities laws. The forward-looking statements, including, without limitation, statements regarding the Company’s expectations concerning the bankruptcy process, the continuation of day-to-day operations, payments to vendors and employees in the ordinary course, the confirmed restructuring Plan, or the Company’s new capital structure, are subject to risks, uncertainties and assumptions. The Company’s actual results could differ materially from those expressed in its forward-looking statements as a result of these risks and uncertainties, including, without limitation, the impact of today’s announcement on the Company’s operations, failure to obtain necessary gaming authority approvals, failure to meet the Plan objectives or to execute the Plan, the Company’s ability to obtain and maintain normal terms with vendors and service providers, the Company’s ability to attract and retain customers, and other economic factors. The Company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made.


Source: Black Gaming, LLC.