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!
Related Links
Related News

Gaming News

 

Chukchansi Economic Development Authority announces settlement to reduce debt

1 October 2020

(PRESS RELEASE) -- The Chukchansi Economic Development Authority, operator of the Chukchansi Gold Resort & Casino, has entered into an agreement to settle litigation and restructure CEDA's debt. The settlement, which has been approved by over 94% of senior noteholders, will reduce CEDA's debt, inclusive of accrued and unpaid interest, by at least $125 million.

"This settlement will reduce CEDA's debt and strengthen our tribal economy," said CEDA Board Chairwoman Claudia Gonzales.

Pursuant to the settlement, the parties will dismiss the lawsuit filed against CEDA styled Wells Fargo Bank, N.A., as Trustee and Collateral Agent v. Chukchansi Economic Development Authority, et al. (New York Supreme Court Index No. 654079/2019). The parties have agreed to initiate a Trust Instruction Proceeding in probate court to obtain an order approving the settlement.

CEDA's obligations in relation to CEDA's 9 ¾% senior notes due 2020 will be satisfied through a pro rata exchange of all outstanding amounts of existing notes for new 8% senior secured notes due seven years from the date of the exchange, in an amount to be determined upon the closing date of the exchange, not to exceed an aggregate principal amount of $193,000,000 and $30,000,000 cash, or, if a new term loan facility is not entered into on the closing date, new senior secured notes due six years from the closing date bearing interest at LIBOR plus 4%.

< Gaming News