Empire Resorts Announces That the Park Avenue Bank of New York Has Issued a 90-Day Standstill Notice to Company’s Note Holders
July 29 2009 - 8:35PM
Business Wire
Empire Resorts, Inc. (the "Company") (NASDAQ: NYNY) announced
today that The Park Avenue Bank of New York (the “Bank”) has issued
a notice of default for failure of the Company to repay $4.4
million in debt obligations to the Bank on their maturity date
of July 28, 2009. As a result of the Company's default, the Bank
contemporaneously exercised a right under an Intercreditor
Agreement which was assigned by the Bank of Scotland to the
Bank on July 28, 2009, to issue a Standstill Notice to the Note
Holders of the Company's $65 million Senior Notes. Pursuant to the
Standstill Notice, Note Holders are prohibited from exercising any
rights or remedies in respect of collection on, set off against,
marshalling of, or foreclosure on the collateral pledged by the
Company to secure its obligations under the Notes for a period of
90 days. The standstill period will expire on October 27, 2009.
About Empire Resorts, Inc.
Empire Resorts owns and operates the Monticello Casino &
Raceway, including slot machines and a 230-acre harness racing
facility in Sullivan County, 90 miles from midtown Manhattan. For
additional information, go to www.empiresorts.com.
Statements in this press release regarding the company's
business that are not historical facts are "forward-looking
statements" that involve risks and uncertainties, including the
need for regulatory and contractual approvals, financing and
successful completion of construction. The company wishes to
caution readers not to place undue reliance on such forward-looking
statements, which statements are made pursuant to the Private
Securities Litigation Reform Act of 1994, and as such, speak only
as of the date made. To the extent the content of this press
release includes forward-looking statements, they involve various
risks and uncertainties including (i) the risk that the Company’s
agreement with Concord Associates is not closed; (ii) the risk that
financing necessary for the proposed project may not be able to be
obtained because of credit factors, market conditions or other
contingencies, (iii) the risk that regulatory or contractual
approvals are not obtained, (iv) the risk of non-compliance by
various counterparties of the related agreements, and (iv) general
risks affecting the company as described from time to time in it's
reports filed with the Securities and Exchange Commission. For a
full discussion of such risks and uncertainties, which could cause
actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in the company's
Annual Report or Form 10-K for the most recently ended fiscal
year.
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