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Gaming Guru

Tim O'Reiley

Affinity Gaming gains breathing room in shareholder fight

14 May 2013

LAS VEGAS -- Affinity Gaming gained limited breathing space Monday in its on-going legal battle with largest shareholder Z Capital Partners.

At a hearing, Clark County District Judge Mark Denton put on hold for 15 days his preliminary injunction issued last week that stopped Affinity from setting its poison pill in motion if Z Capital buys any more stock. Affinity said it would file an appeal with the Nevada Supreme Court.

Z Capital now owns just over 30 percent of the company, but the poison pill would unleash a flood of new stock that would dilute its position to about 5 percent if the Chicago-based investment firm boosts its position.

However, Denton allowed Z Capital to continue to try to find votes to support the two candidates it has nominated for Affinity’s seven-member board. The vote is scheduled for Tuesday. The company said it already has about 62 percent of the votes in hand for its board slate.

Z Capital has said it would like to buy more stock but has not submitted a takeover bid for the entire company. According to Affinity attorneys, Z Capital was putting out buy offers as recently as Friday.

Affinity owns the two Terrible’s casinos in Las Vegas, the three in Primm, and several others scattered across the country.