Casino Resource Corporation
BILOXI, Miss., Sept. 23, 1996 - Casino Resource Corporation (Nasdaq: CSNR), a
Minnesota corporation headquartered in Biloxi, Miss., today announced that it, along with
its joint venture partners, Robert and Lowana Low, have submitted a contract to purchase
the Palace Casino, located in Biloxi, Miss. The contract has been signed and accepted by
Maritime Group, Ltd., the
Debtor-in-Possession, as well as Roy Anderson Corporation,
the major creditor. The contract is now subject to the approval of the United States
Bankruptcy Court for the Southern District of Mississippi.
The Palace Casino and its assets are being acquired for a purchase price of $14.25
million, which consists of $11.5 million in cash, and the balance in notes.
Casino Resource Corporation and the Lows have formed a Mississippi Limited Liability
Company, New Palace, Inc., for the purpose of acquiring and operating the Palace Casino
assets. Robert and Lowana Low are the majority shareholders in Prime, Inc., a nationally
prominent truck leasing firm headquartered in Springfield, Mo., with annual revenues in
excess of $300 million. The Lows will initially own 80% of the LLC and Casino Resource
Corporation 20%, with CRC having an option to purchase an additional 29% within the
next two-year period. The Lows have committed to the majority of the acquisition capital,
as well as working capital for the project. Casino Resource Corporation will enter into a
casino management agreement with the newly formed LLC.
The Palace Casino filed for Chapter 11 Bankruptcy protection in December 1994. It
continues to operate under Chapter 11 protection and it is contemplated that the casino
will remain open through the date of closing, which is expected to be sometime in
December 1996. Gross gaming revenue for the past six months, as reported by the Palace
to the Mississippi Gaming Commission, was approximately $2.0 million per month, which
virtually breaks the property even.
New Palace, Inc. has entered into a long-term lease agreement on an eleven-acre property,
which adjoins the Palace's present ten acres. The combined land holdings will make the
Palace property the largest gaming site on the Mississippi Gulf Coast. In addition, plans
call for the development of a hotel which will be adjacent to the casino as well as other
site improvements and casino upgrades.
According to Jack Pilger, CEO of Casino Resource Corporation, "The Palace was
victimized by major cost overruns from its inception; with the seller, Maritime Group,
Ltd., spending some $50 million on the casino and land improvements. With inadequate
working capital, the property was never able to establish itself here on the Gulf Coast.
With appropriate working capital, experienced management, adequate parking, hotel
rooms, an attractive entrance, a reduced purchase price, and with it being basically an all
equity transaction, I feel confident the new Palace Casino will be in a position to garner
enough market share to give us an excellent return on equity."
Pilger noted, "Pending a successful closing of the Palace transaction and in conjunction
with our previously announced Tunisia, North Africa casino, which is currently under
construction and due to open in July of 1997; as well as our Technical Assistance
Agreement with Harrahs relative to the Pokagon Casinos in Michigan and Indiana, the
Company will have taken a major stop toward achieving its goal of establishing its third
division: "Gaming." Presently, CRC's Entertainment Division operates at the Aladdin
Hotel and Casino in Las Vegas; the Country Tonite Theatre in Branson, Mo., and the
recently announced new 1,500-seat venue in Pigeon Forge, Tenn. CRC's Hospitality
Division, while presently operating just Grand Hinckley Inn, adjacent to Grand Casino,
Hinckley, looks forward to operating additional hotels adjacent to CRC's aforementioned
gaming sites."
Casino Resource Corporation is a diversified hospitality, entertainment, and gaming
company.
SOURCE Casino Resource Corporation/CONTACT: Jack Pilger, Chief Executive Officer;
or Robert J. Allen, Vice President, both of Casino Resource Corporation, 601-435-1976/
Stroh and Post Closing Committee Agree On Adjusted
Closing Statement
DETROIT, MI Sept. 23, 1996 - The Stroh Brewery Company and the Official Committee
of Unsecured Creditors of G. Heileman
Brewing Company, Inc. ("Heileman") announced
today that, in connection with Stroh's acquisition of Heileman's assets, Stroh will
distribute an additional $2,454,000 principal amount of 11.10% Senior Subordinated
Notes due 2006.
Stroh acquired Heileman's assets on July 1, 1996 in a transaction which was approved by
the United States Bankruptcy Court as part of the confirmation of the Second Amended
Joint Plan of Reorganization ("the Plan"), dated June 26, 1996, for Heileman and related
debtors.
Stroh and the Post Closing Committee agreed that the aggregate principal amount of Senior
Subordinated Notes to be distributed by Stroh, in accordance with the confirmed Plan is
$67,500,000. Stroh previously distributed $65,046,000 principal amount of the Senior
Subordinated Notes in accordance with the Plan.
SOURCE The Stroh Brewery Company/CONTACT: Lacey Logan of Stroh Brewery,
313-446-3118