HOUSTON, March 9, 2006 (PRIMEZONE) -- Nevada Gold & Casinos, Inc. (AMEX:UWN) announced that Oneida Entertainment, LLC ("Oneida"), has been admitted as a member in American Racing and Entertainment, LLC. Oneida has made a $5 million equity investment in American Racing, which owns the Tioga Downs Racetrack located just west of Binghamton in Nichols, New York. Oneida is a subsidiary of a fund managed by Plainfield Asset Management LLC ("Plainfield"). Based in Greenwich, Connecticut, Plainfield is an investment advisor registered with the Securities and Exchange Commission and manages in excess of $1 billion of investment capital. Oneida will receive a 20% membership interest in American Racing and the membership interests of the other members will be reduced on a prorata basis as follows:
-- Nevada Gold 40% -- Southern Tier Acquisitions II, LLC 20% -- TrackPower, Inc. 20%
Previously, Oneida, who had a competing plan of reorganization in the Mid-State Raceway, Inc. Chapter 11 bankruptcy, agreed to withdraw its objection to the reorganization plan submitted by the debtors and Vernon Downs Acquisition, LLC ("VDA"), which is a wholly owned subsidiary of American Racing. Mid-State Raceway, Inc. owns the Vernon Downs Racetrack located just east of Syracuse in Vernon, New York. On February 10, 2006, the Bankruptcy Court issued an order that allows for VDA's and the Debtors' plan to be confirmed, subject to VDA providing the court written proof that VDA has sufficient monies on deposit to fund all payments to creditors due on the effective date on or before March 6, 2006, and a confirmation order being entered. Sufficient funds to pay all payments due to creditors on the effective date of VDA's and the Debtors' Plan were placed on deposit on March 6 by American Racing; however, the judge has not yet entered a confirmation order.
American Racing and another fund managed by Plainfield have also entered into a commitment letter whereby Plainfield has agreed to provide second lien debt financing in an aggregate amount of $15 million to American Racing for the development and upgrade of Vernon Downs Racetrack and the Tioga Downs Racetrack. The closing of the debt financing is conditioned upon the entry of a confirmation order in the Vernon bankruptcy approving VDA's and the Debtor's Plan, American Racing obtaining senior, first lien debt financing of up to $60 million, and satisfaction of usual and customary conditions for transactions of that type.
H. Thomas Winn, Chairman and CEO of Nevada Gold, commented, "On behalf of Nevada Gold, we welcome our new partners in American Racing and look forward to a successful opening of Tioga Downs, as well as the successful acquisition of Vernon Downs."
About Nevada Gold & Casinos
Nevada Gold and Casinos, Inc. (AMEX:UWN) of Houston, Texas, is a developer, owner and operator of gaming facilities and lodging and entertainment facilities in Colorado, California, Oklahoma, New York and New Mexico. The Company owns a 43% interest in the Isle of Capri-Black Hawk LLC, which owns Isle of Capri-Black Hawk and Colorado Central Station, both of which are in Black Hawk, Colorado. Colorado Grande Casino in Cripple Creek, Colorado is wholly owned and operated by Nevada Gold. The Company owns a 40% interest in American Racing and Entertainment, LLC, which owns Tioga Downs Gaming, Racing and Entertainment located in New York State. Nevada Gold also has a management contract for the facility. The Company also works with Native American tribes in a variety of capacities from the right to lease gaming equipment to development and management of their gaming properties. Native American projects consist of River Rock Casino in Sonoma County, California, a casino to be built in Tulsa, Oklahoma, for the Muscogee (Creek) Nation, a casino to be built in Pauma Valley, California, for the La Jolla Band of Luiseno Indians, and a casino to be developed by Buena Vista Development Company, LLC in the city of Ione, California, for Buena Vista Rancheria of Me-Wuk Indians. For more information, visit http://www.nevadagold.com.
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