Herbst Gaming receives oral confirmation of reorganization plan

By Caroline Salls

Pittsburgh, Nov. 3 - Herbst Gaming, Inc.'s plan of reorganization has been orally confirmed by the U.S. Bankruptcy Court for the District of Nevada, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

As previously reported, the plan calls for conversion of the company's $860 million senior credit facility into debt and equity of the reorganized Herbst through ownership of a new holding company.

In addition, all of the outstanding obligations under the company's 8 1/8% senior subordinated notes due 2012 and 7% senior subordinated notes due 2014 will be terminated, and existing equity will be cancelled.

Creditor treatment will include:

• Holders of other priority claims and other secured claims will be paid in full;

• All of the company's outstanding senior credit facility obligations will be converted into a $350 million restructured senior loan and equity of the reorganized companies;

• All outstanding obligations under the company's 8 1/8% senior subordinated notes and 7% senior subordinated notes will be terminated and holders will receive no distribution;

• Holders of general unsecured claims will be paid in full in cash;

• Intercompany claims will be reinstated or discharged, at the reorganized company's option;

• Intercompany interests will remain unaltered; and

• Existing equity in Herbst will be cancelled and holders will receive no distribution.

Herbst said the plan will take effect on the 11th day after the written plan confirmation order is filed with the court, provided the additional conditions to effectiveness are satisfied or waived.

The Las Vegas-based casino business owns and operates 12 casinos in Nevada, two in Missouri and one in Iowa. The company filed for bankruptcy on March 22, 2009. Its Chapter 11 case number is 09-50746.

© 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.