Reno Nevada News
Atlantis Casino Swallows Fitzgerald's
January 05, 2005
RENO, Nev., Jan. 5 /PRNewswire-FirstCall/ -- Monarch Casino & Resort, Inc.
(Nasdaq: MCRI) (the "Company"), owner of the Atlantis Casino Resort in Reno,
Nevada, announced today that through a wholly-owned subsidiary, Golden Town,
Inc., it has acquired 100% of the equity interest of LLH Gaming, Inc. and its
affiliates ("LLH"). LLH is the party to a Purchase Agreement for the purchase
by LLH of the Fitzgerald's Reno Casino Hotel located in downtown Reno, Nevada
("Fitzgerald's Reno"). LLH sought protection under Chapter 11 of the United
States Bankruptcy Code on December 29, 2005, just prior to the expiration date
of LLH's Purchase Agreement for Fitzgerald's Reno.
The Company intends to cause LLH to complete the purchase of Fitzgerald's
Reno at an estimated cost of $11,000,000 plus additional transaction costs and
to cause the LLH bankruptcy case to be dismissed. However, the purchase of
Fitzgerald's Reno is subject to several issues and contingencies, any of which
could prevent or delay the successful completion of the purchase.
Because of the significant contingencies and uncertainties, there is no
assurance that Monarch's subsidiary will consummate the purchase of
Fitzgerald's Reno is a 351-room hotel with approximately 27,000 square
feet of gaming space and three restaurants located in the central business
district of downtown Reno, and is within walking distance of the National
Bowling Stadium and other downtown attractions.
A United States Bankruptcy Court approved the Fitzgerald's Reno Plan of
Reorganization on May 5, 2003. The Fitzgerald's Reno bankruptcy debtors
surrendered their gaming license in August 2003, and since that date, a court
appointed supervisor has operated Fitzgerald's Reno.
Monarch Casino & Resort, Inc., through its wholly-owned subsidiary, owns
and operates the tropically-themed Atlantis Casino Resort in Reno, Nevada.
The Atlantis is the closest hotel-casino to, and is directly across the street
from, the Reno-Sparks Convention Center. The Atlantis is recognizable due to
its Sky Terrace, a unique structure rising approximately 55 feet from street
level and spanning 160 feet across Virginia Street with no intermediate
support pillars. The Sky Terrace connects the Atlantis to a 16-acre parcel of
land owned by the Company, that is compliant with all casino zoning
requirements and is suitable and available for future expansion of the
Atlantis facilities and is currently being used by the Company as additional
paved parking for the Atlantis. The existing Atlantis site offers almost
1,000 guest rooms in three contiguous high-rise hotel towers and a motor
lodge. The tropically-themed Atlantis features approximately 51,000 square
feet of high-energy casino space with 38 table games and approximately
1,450 slot and video poker machines, a sports book, Keno and a poker room, and
offers a variety of dining choices in the form of nine high-quality food
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