Florida Gaming presents plan of liquidation and disclosure statement

By Kali Hays

New York, June 6 – Florida Gaming Centers, Inc. filed its Chapter 11 plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of Florida.

The company closed the $155 million sale of substantially all of its assets to Fronton Holdings, LLC on April 30.

The purchase price was comprised of $140 million in cash, the assumption of $13.77 million in debt owed to Miami-Dade County, Fla., and the assumption of $2.1 million in accounts payable.

Fronton is an affiliate of ABC Funding, LLC, which was the previous stalking horse bidder for company assets, as well as the company’s pre-petition lender.

The company said that it has selected Soneet R. Kapila to act as its creditor trustee beginning on the effective date of the plan.

Under the plan, treatment of creditors will include the following:

• Priority tax claims and other administrative claims will be paid in full in cash;

• Holders of class 1 Florida Gaming Centers claims including priority claims and priority tax claims will be paid in full in cash;

• Holders of class 2 lenders holdings claims who previously received partial distribution shall receive no further distribution;

• Holders of class 3 non-subordinated holdings claims will receive a cash payment of its share from either the initial distribution amount, the balance of the company’s claim remainder, proceeds from causes of action, or proceeds from the liquidation of creditor trust assets;

• Holders of class 4 subordinated holdings claims will receive cash payment of its share of the subordinated holdings claim remainder, if any;

• Holders of class 5 equity interests will receive a distribution from the net proceeds of causes of action, if any, after the full payment of all allowed class 1 claims;

• Holders of class 6 holdings preferred equity interests will receive cash payment of its pro rata share of holdings preferred equity interest share, if any, and;

• Holders of class 7 holdings equity interests will receive cash payment of its share of Holdings equity interest, if any.

Based in Miami, Florida Gaming owns and operates gaming facilities. The company filed for bankruptcy on Aug. 19, 2013 in the U.S. Bankruptcy Court for the Southern District of Florida under Chapter 11 case number 13-29597.

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