CasinoCityTimes.com

Gurus
News
Newsletter
Search News Subscribe
Stay informed with the
NEW Casino City Times newsletter!
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!

Gaming News

 

Bankruptcy Appellate Panel Rules in Favor of AWI

18 April 2005

LAS VEGAS – (PRESS RELEASE) -- American Wagering, Inc. (OTC Bulletin Board: BETM) today announced that the Bankruptcy Appellate Panel (the "BAP") for the 9th Circuit Court of Appeals ruled in favor of the Company regarding the Racusin subordination matter.

On April 14, 2005, the BAP issued its decision reversing the bankruptcy court and ruling that the debt owed to Michael Racusin dba M. Racusin & Co. ("Racusin") is subordinated pursuant to the provisions of Section 510(b) of the U.S. Bankruptcy Code. As a result of this ruling, the debt to Racusin will be paid in the form of 250,000 shares of the Company's common stock rather than $2.8 million in cash.

Victor Salerno, the Company's CEO and President, said, "We are very pleased with this affirmation from the Bankruptcy Appellate Panel; we always believed that Racusin bargained for stock and should, therefore, receive stock rather than cash. In addition, we had earmarked funds for the payment of the Racusin claim and this ruling will allow us to reinvest that money back into the Company instead. With these funds now at our disposal, we are more confident than ever that we will be able to implement our strategies to grow the Company and increase shareholder value in the long term."

Pursuant to the terms of the settlement agreement between Racusin and the Company, Racusin retains the right to appeal this decision to the 9th Circuit Court of Appeals. In the event of an appeal, a final decision regarding this matter could be delayed by 12 to 36 months.

< Gaming News