Herbst Gaming plan confirmed, expected to take effect on Feb. 5

By Caroline Salls

Pittsburgh, Jan. 28 - Herbst Gaming, Inc.'s first amended joint plan of reorganization has been confirmed under an amended order from the U.S. Bankruptcy Court for the District of Nevada, according to an 8-K filed Thursday with the Securities and Exchange Commission.

Herbst said the plan is expected to take effect on Feb. 5.

Under the plan:

• All claims under the company's $860 million senior credit facility will be converted into debt and equity of the reorganized company through ownership of a new holding company;

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

• All outstanding obligations under Herbst's 8 1/8% senior subordinated notes due 2012 and 7% senior subordinated notes due 2014 will be terminated, and holders will receive no distribution; and

• All of the existing equity in the company will be cancelled, and holders will receive no distribution.

As of Nov. 30, the company had $914.8 million in total assets and an estimated $1.27 billion in debt.

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.

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