Black Gaming's plan of reorganization confirmed by bankruptcy court

By Lisa Kerner

Charlotte, N.C., June 28 - Black Gaming, LLC's plan of reorganization was confirmed, the company announced on Monday.

More than 98% of the creditors who cast ballots voted in favor of confirmation, according to a company news release.

"The plan confirmed today allows us to reduce our debt by more than $143 million and emerge with a more manageable capital structure," said chief executive officer Robert R. Black, Sr.

Under the terms of the confirmed plan:

• The company's senior credit facility with Wells Fargo Foothill, Inc. will be paid in full;

• Senior secured noteholders will exchange their notes and claims for a new credit facility of $62.5 million;

• Senior subordinated noteholders will receive warrants to purchase equity interests in reorganized Black Gaming in exchange for their notes and claims;

• To the extent permitted under the Bankruptcy Code, general unsecured creditors, including vendors, will be paid in cash;

• Anthony Toti, Newport Global Advisors or one of its affiliates, Black and one or more parties to be designated by Michael Gaughan will contribute cash in excess of $18.25 million in exchange for 100% of the new equity interests in reorganized Black Gaming; and

• Black will remain chief executive officer; Toti will remain chief operating officer; and Sean P. McKay will remain chief financial officer.

Black Gaming, a Mesquite, Nev., casino operator, filed for bankruptcy on March 1. Its Chapter 11 case number is 10-13301.

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