Pinnacle has offered to acquire all outstanding 13% seniorexchange notes and 12% notes for approximately $809.07 in cash per$1,000 in principal amount, along with 100% of all otherpre-petition general unsecured claims allowed as of July 12 in anamount not to exceed $2 million. The tentative agreement is withmembers of the creditors' committee of unsecured creditors.

President Casinos filed for bankruptcy protection in 2002. Thecompany sold its Biloxi, MS, hotel and casino for $82 million in2005, leaving only its riverboat operations in St. Louis. In May2006, Pinnacle cut the deal for President's St. Louis Riverfrontproperty; scheduled to close later this year, it is contingent uponlicensing approval by the Missouri Gaming Commission and finalapproval of the debtors' bankruptcy plan by the court.

Pinnacle chairman/chief executive Daniel Lee says the move toacquire the debt will help facilitate the company's acquisition ofthe casino property. "By acquiring these debt claims, we can helpsupport a planned bankruptcy-court reorganization," he says.