Elsinore files plan of reorganization.LAS VEGAS--(BUSINESS WIRE)--March 1, 1996--Elsinore Corp. (ASE/PSE:ELS) Friday announced that it has filed with the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Nevada a proposed plan of reorganization and accompanying disclosure statement related to the company's filing for Chapter 11 protection on Oct. 31, 1995, under the U.S. Bankruptcy Code Bankruptcy Code may refer to:
The plan was filed in accordance with a settlement that Elsinore recently reached with the holders of the 12.5 percent first mortgage notes who assert a $60 million claim against the company. Under the terms of the plan, the 12.5 percent first mortgage noteholders will receive 87.5 percent of the common shares of the reorganized Elsinore in consideration for a reduction of their claim from approximately $60 million to $30 million. In addition, the company's 20 percent senior mortgage noteholders would retain their $3 million in outstanding principal plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. and would be paid at an interest rate of 10 percent per annum Per annum Yearly. or other appropriate interest rate approved by the Bankruptcy Court. The company's convertible subordinated noteholders, who currently assert claims for approximately $1.5 million, would receive 2.5 percent of the common shares of the reorganized Elsinore. The U.S. Internal Revenue Service (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. ), which asserts a claim of approximately $3 million, would be paid in accordance with the Bankruptcy Code or in such manner as otherwise agreed by the IRS. Also as part of the plan, $1.5 million will be placed in a pool for payment to unsecured creditors over a two-year period. Existing Elsinore shareholders will hold 10 percent of the common stock of the reorganized Elsinore. Moreover, after implementation of the plan, a rights offering will be made to the shareholders to raise $5 million to provide additional funding for Elsinore's operations and capital improvements. Frank L. Burrell Jr., chairman of the board, will remain as an officer until June 15, 1996, or the confirmation date of the plan, whichever is earlier. Thomas E. Martin
Thomas Ellsworth Martin (January 18, 1893 - June 27, 1971) was a United States Representative and Senator from Iowa. , president and chief executive officer, will remain in his position until the confirmation date. Gary Acord, senior vice president and chief financial officer, will remain in his position until April 1, 1996. Subsequent to the confirmation of the plan, management of the reorganized Elsinore will be as designated by the first mortgage noteholders. The plan is subject to approval by the Bankruptcy Court which is presiding over the Chapter 11 cases involving the company and certain of its subsidiaries. The approval process likely will take several months, and there is no assurance that the plan will be approved by the Bankruptcy Court. Also, the plan and disclosure statement may be amended by the company prior to its approval by the court. Trading in the company's common stock continues to be halted by the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. . As previously reported, the exchange intends to review the company's continued listing eligibility concurrently with its progress in the Chapter 11 proceeding. Elsinore owns and operates the Four Queens, a downtown Las Vegas Downtown Las Vegas can have several meanings depending on how it is used. It can mean:
craps Gambling game in which each player in turn throws two dice, attempting to roll a winning combination. The term derives from a Louisiana French word, crabs, which means “losing throw. and other table games. For information on Elsinore via facsimile at no cost, simple call 800/PRO-INFO and dial company code 177. CONTACT: Elsinore Corp., Las Vegas Thomas E. Martin, 702/387-5110 Gary Acord, 702/387-5146 or The Financial Relations Board Inc., Los Angeles Daniel Saks, 310/442-0599 (general info) |
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