LAS VEGAS, July 21, 2003 (PRIMEZONE) -- Mego Financial Corp., doing business as Leisure Industries Corporation of America (Pink Sheets:LESR), which filed for reorganization on July 9, 2003 in the United States Bankruptcy Court, District of Nevada in Reno, today announced that it will liquidate all of the assets of the company in an orderly manner over the next six to eight months.
The company also announced the appointment of C. Alan Bentley as Trustee. Mr. Bentley, a partner with Mackinac Partners, has more than two decades of turnaround and restructuring experience with a strong emphasis on strategic planning, financial transactions, mergers and acquisitions, and corporate restructuring. Mackinac Partners is a merchant bank specializing in restructuring and turnaround management, investing, capital markets services, merger and acquisition advisory services, strategic planning services and litigation advisory services. Mackinac Partners will also serve as reorganization consultants to Leisure Industries.
Mr. Bentley said, "I want to emphasize that it is anticipated that Leisure Industries' homeowners will continue to use the resorts without interruption during the sales processes. I also want to emphasize that the liquidation will be a process and in no way should be construed as a fire sale."
Additionally, Mr. Bentley pointed out, "The structured process of liquidation notwithstanding, it is unlikely that there will be sufficient assets remaining to fulfill the entire liability owed the general unsecured creditors. Moreover, it is not expected that there will be any recovery for the equity owners of Leisure Industries."