Mount Airy Casino Resort cash infusion protocol OK'd by Pennsylvania Gaming Control Board

By Caroline Salls

Pittsburgh, Dec. 18 - Mount Airy Casino Resort and trustee Anthony F. Ceddia received the Pennsylvania Gaming Control Board's approval of a new protocol that will enable the casino resort to move forward with capital projects and provide additional liquidity, according to a company news release.

Mount Airy said the protocol establishes a process that would allow Mount Airy Casino Resort owner Louis DeNaples to provide the resort with funds if needed to meet its real estate tax and local share assessment obligations and enable the property to move forward with potential capital projects, including the refurbishment of the resort's golf course and construction of a swimming pool.

According to the release, this effort to address potential liquidity concerns comes in the midst of a national economic downturn and tight liquidity in the banking and lending markets.

As an independent property, Mount Airy said it must rely on DeNaples to infuse cash and ease liquidity pressures.

"Mount Airy Casino Resort is and remains a growing, viable business," Ceddia said in the release.

"The protocol that was approved by the board today simply provides Mount Airy Casino Resort with added financial flexibility in a difficult national economic situation."

Mount Airy chief executive officer Joe D'Amato said in the release, "We are continuing to experience strong growth in revenues - most notably a 31% increase in revenues for the month of November compared to a year ago.

"But there is room for further improvement."

Mount Airy said it is working to address financial challenges facing the gaming industry by increasing its marketing efforts, engaging in ongoing negotiations with its lenders regarding an amendment to its credit facility and improving liquidity through the approval of this new protocol.

Any infusion of cash by DeNaples would provide funding while the negotiations with the lenders continue and any amended credit facility is reviewed for approval by the Pennsylvania Gaming Control Board.

Mount Airy is a Paradise Township, Pa., resort.

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