As reported by: Klas TV
Barrick Gaming has terminated its agreement to buy the Golden Nugget Laughlin hotel-casino, leaving Landry's Restaurants in position to acquire it, according to documents filed with the Securities and Exchange Commission.

Las Vegas-based Barrick said in the May 17 filings that Poster Financial Group, the owner of Golden Nugget casinos in Las Vegas and Laughlin, let cash flow at the Laughlin property fall below a level specified in the deal. But Poster disputed that claim.

"Poster Financial vigorously disputes any assertion that it has breached any of the provisions of the Barrick purchase agreement," Poster said in the filings.

Barrick had wanted to buy the 300-room, tropical-themed hotel-casino in the Colorado River resort town for $31 million. A November 2004 agreement between the companies was set to expire May 31.

Landry's announced in February it would buy the 1,900-room Golden Nugget in downtown Las Vegas from Poster Financial for $295 million.

A Landry's lawyer said the deal was structured in such a way that his company wouldn't have to pay anything more to take over the Laughlin casino. John Mulkey, a Bear Stearns Co. gambling analyst in New York, said in an investor's note that Landry's would have to assume bank debt that was to be paid off with the sale to Barrick.


Article By: Klas TV