Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-As a result of a settlement related to the bankrupt estate of President Riverboat Casino-Missouri Inc., locally based Pinnacle Entertainment Inc. is effectively acquiring the President Casino in St. Louis for $41.5 million. The US Bankruptcy Court for the Eastern District of Missouri granted a motion Tuesday to approve the settlement.

President Casinos Inc. and President Riverboat Casino-Missouri Inc. have been operating under Chapter 11 bankruptcy protection since June 20, 2002. In 2005, the company sold its Biloxi, Miss., hotel and casino for $82 million, leaving only its riverboat operations in St. Louis.

In May 2006, Pinnacle cut a $31.5-million deal for President’s St. Louis Riverfront property that was contingent upon licensing approval by the Missouri Gaming Commission and final approval of the debtors’ bankruptcy plan by the court. In July, as part of its effort to receive approval to acquire the property, Pinnacle made a move to acquire more of St. Louis-based President Casinos Inc., agreeing with creditors of the company to acquire its debt and related claims for a total of approximately $62 million.

Pursuant to Tuesday’s settlement and President Riverboat Casino-Missouri Inc.’s reorganization plan, Pinnacle will pay the aforementioned $31.5 million for President Riverboat Casino-Missouri Inc.’s common stock and receive a distribution of approximately $52 million from the estate. The cost of the debt and the cost of the casino minus the distribution means Pinnacle effectively will have paid approximately $41.5 million for the President Casino in St. Louis and certain related assets. Pinnacle may receive up to another $5 million in payments at a later date, and has agreed to waive an additional $5 million in claims.

A hearing to consider confirmation of President Riverboat Casino-Missouri Inc.’s reorganization plan is scheduled to take place on Nov. 29. After that, the Missouri Gaming Commission must approve the change of control.

President Casino St. Louis Riverfront is located within walking distance of the Laclede’s Landing historic district and Pinnacle’s St. Louis City project. Groundbreaking on Pinnacle’s nearby $430-million downtown project took place in September 2005. The first-class resort will open in 2007 and will include a 90,000-sf casino, a 200-room luxury hotel, restaurants and 12,000 sf of meeting and convention space.

In November 2005, the company broke ground on the $375-million River City Casino & Hotel in the Lemay area of south St. Louis County. Scheduled to open in 2008, the casino resort will have 100 hotel rooms, a full-service spa, restaurants, a boutique bowling alley, a multiplex movie theatre, an indoor ice rink, a public park with athletic fields and a hatch-shell music and entertainment venue.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Awards 2020Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.