Key Developments: Lakes Entertainment Inc (LACO.W)
3.33USD
20 May 2013
$0.28 (+9.18%)
$3.05
$3.33
$3.33
$3.33
100
13
$3.40
$2.10
Latest Key Developments (Source: Significant Developments)
Lakes Entertainment, Inc.'s Evitts Resort, LLC Announces Purchase of Rocky Gap Lodge & Golf Resort
Lakes Entertainment, Inc. announced that Evitts Resort, LLC (Evitts), a wholly owned subsidiary of Lakes, closed on the purchase of the Rocky Gap Lodge & Golf Resort near Cumberland Maryland (Rocky Gap). Rocky Gap is a AAA four-diamond resort which includes a 215-room hotel, convention center, spa, two restaurants and the only Jack Nicklaus signature golf course in Maryland. The purchase price of approximately $6.8 million was paid at closing. Contemporaneous with the closing, Evitts entered into a lease with the Maryland Department of Natural Resources for approximately 260 acres of real property on which Rocky Gap is situated (Lease). The initial term of the lease is for 40 years. Full Article
Lakes Entertainment, Inc. Announces Termination Of Jamul Agreement
Lakes Entertainment, Inc. announced that it terminated the Pre-Development, Development and Financing Arrangement Agreement by and between Lakes Jamul Development, LLC, a wholly owned subsidiary of Lakes, and the Jamul Indian Village. Due to Lakes’ corporate strategic objectives, Lakes determined that it would not continue to move forward with the project with the Tribe and terminated the Agreement, effective March 13, 2012. Lakes has a continuing obligation to fund Tribal support payments equal to approximately $0.6 million subsequent to the termination date and provide funding of certain professional fees for a period of thirty days from the termination date. As of the date of termination, Lakes has advanced approximately $57.5 million including accrued interest to the Tribe related to casino development efforts. As a result of the termination of the Agreement, Lakes has determined the fair value of the notes receivable from the Tribe to be zero which were previously recorded at their fair value of $9.6 million as of October 2, 2011. The Tribe remains obligated to repay the advances and accrued interest, and Lakes continues to have collateral in all revenues from any future casino owned by the Tribe, and the casino’s furnishings and equipment. Full Article
Lakes Entertainment, Inc. Announces Buy-out Of Partner In Evitts Resort, LLC
Lakes Entertainment, Inc. announced that it has entered into an agreement to buy out Addy Entertainment, LLC’s interest in Evitts Resort, LLC, a joint venture between Lakes and Addy. In September 2011, Evitts submitted a response to a request for proposal by the State of Maryland Video Lottery Facility Location Commission for a video lottery operation license at the Rocky Gap Lodge & Golf Resort in Cumberland, Maryland. Subsequent to the buy-out, Lakes will be the sole owner of Evitts. The buy-out is contingent on Evitts being awarded the license by the Commission, which has not yet selected a recipient of the license. Full Article
Lakes Entertainment, Inc.'s Joint Venture Partner Does Not Close Acquisition Of Dania Jai Alai
Lakes Entertainment, Inc. announced that on November 28, 2011, Aragon Group and Summer Sport Enterprises, a subsidiary of Boyd Gaming Corporation, (Aragon) issued a letter to Dania Entertainment Center, LLC (Dania) formally terminating the asset purchase agreement between Aragon and Dania for the purchase of the Dania Jai Alai in Dania Beach, Florida, for failing to close the transaction by November 28, 2011. As previously announced, Lakes entered into a joint venture with Dania for the management and redevelopment of the Dania Jai Alai property if Dania closed the asset purchase transaction with Aragon. Full Article
Lakes Entertainment, Inc. Announces Formation of Joint Venture For Potential Maryland Project
Lakes Entertainment, Inc. announced that it entered into a joint venture with Addy Entertainment, LLC to form Evitts Resort, LLC (Joint Venture), which submitted a response to a request for proposal by the State of Maryland Video Lottery Facility Location Commission (Commission) for a video lottery operation license (License) in Allegany County, Maryland. The Commission will evaluate applications and award the License to operate a video lottery operation at the Rocky Gap Lodge & Golf Resort in Cumberland, Maryland (the Resort). The License has an initial term of 15 years and is expected to be awarded in late 2011. Contemporaneous with the execution of the joint venture agreement, Lakes entered into a Development Services and Management Agreement (the Management Agreement) with the Joint Venture to develop and manage the gaming facility and existing facilities at the Resort, if the Joint Venture is awarded the License. Full Article
Lakes Entertainment, Inc. Announces Joint Venture for Dania Jai Alai Casino Development
Lakes Entertainment, Inc. announced that it has entered into a joint venture with Dania Entertainment Center, LLC (DEC) for the management and redevelopment of the existing Dania Jai Alai fronton in Dania Beach, Florida, to convert it into a destination casino (Casino) which will include slot machines, Jai Alai, entertainment, a variety of bars and restaurants and other related amenities. DEC previously entered into an asset purchase agreement to purchase the Dania Jai Alai fronton from Boyd Gaming Corporation, which is scheduled to close before the end of the year (Boyd Acquisition). Lakes made an initial $4.0 million investment in the joint venture via a convertible promissory note that will automatically convert to equity on the closing of the Boyd Acquisition. If the Boyd Acquisition does not close, Lakes would likely lose such investment. Such investment was used to reimburse DEC for the non-refundable deposit it made under the Boyd Acquisition asset purchase agreement, and other development expenses. Under the joint venture agreement, Lakes has the right to invest an additional $6.0 million when the Boyd Acquisition closes, which Lakes currently intends to fund. If Lakes does not invest the additional $6.0 million and the Boyd Acquisition closes, Lakes will not be guaranteed to receive a management agreement but will be paid a development fee of $250,000. Full Article
Lakes Entertainment, Inc. Announces Buy-Out of Management Contract with Pokagon Band of Potawatomi Indians
Lakes Entertainment, Inc. announced that the Pokagon Band of Potawatomi Indians (Band) exercised its right to buy out the remaining term of the Third Amended and Restated Management Agreement (Management Agreement) between the Band and Lakes for the management of the Four Winds Casino Resort (Casino), which was scheduled to expire on August 1, 2012. Pursuant to the Buy-Out and Termination Agreement (Buy-Out Agreement), on June 30, 2011, the Band paid to Lakes a buy-out fee of approximately $24.5 million and repaid in full all outstanding debt owed by the Band to Lakes (which Lakes previously sold to unaffiliated investors). As a result of the previous sale of those receivables, Lakes did not receive any of the proceeds from the Band’s repayment of that debt. The Buy-Out Agreement also terminated the Management Agreement resulting in Lakes having no further obligations or responsibilities with respect to the Casino. Full Article
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