Empire Resorts files suit following alleged default on 5.5% convertibles

By Caroline Salls

Pittsburgh, Aug. 6 - Empire Resorts, Inc. has filed a declaratory judgment action against the holders of $48.73 million of its 5.5% senior convertible notes and the Depository Trust Co. after receiving a notice of default in connection with the company's failure to pay the principal amount of the notes plus interest and liquidated damages, according to an 8-K filed with the Securities and Exchange Commission.

Empire Resorts said the default notice did not include copies of executed put exercise notices as required under the notes indenture.

As a result, the company said it believes that no put rights have been exercised, and the notes will mature on July 31, 2014.

In its complaint, Empire asked the court to rule that none of the noteholders delivered a put notice within the mandated time for exercise of the put rights and that the full $65 million of the notes will mature on July 31, 2014.

Empire Resorts, located in Henderson, Nev., operates in the hospitality and gaming industries in New York.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.