Thunderbird Resorts Inc.

Thunderbird Resorts Inc.

August 05, 2009 23:20 ET

Thunderbird Resorts Inc.: Sales Report for July 2009 Guatemala and Corporate Liquidity Update

PANAMA, REPUBLIC OF PANAMA--(Marketwire - Aug. 5, 2009) - Thunderbird Resorts Inc. ("Thunderbird" or "Group") (FRANKFURT:4TR)(EURONEXT:TBIRD) reports the following sales for July 2009 along with an update on the Guatemala operation and corporate liquidity:

Thunderbird Resorts Inc. -
Group-wide sales results by country
(unaudited) (in thousands) July 2009
Panama $ 5,072
Costa Rica (1) 1,324
Nicaragua 1,056
Guatemala 393
Philippines 3,900
Poland 269
Peru Gaming 1,880
Peru Hotel 1,109
Total net gaming wins and other sales $ 15,003

(1) During the third quarter of 2008, the Group acquired a controlling
interest in the entity that holds the Fiesta Casino Holiday Inn Express
(formerly Garden Court) operation, and as a result began consolidating
that operation at 100 percent beginning 1 September 2008. The balance
of the Costa Rican operation is a joint venture of the Group and its
results of operations are proportionally consolidated into the Group's
financial statements, therefore the table above represents the Group's
50 percent share in all the operations other than the Holiday Inn
Express property which is reported at 100 percent. The Group owns
controlling interest in all other countries and accordingly sales are
reported at 100 percent. For details of Group ownership at the country
level please refer to the Group's Annual Report 2008.

Guatemala Update

In July 2009, Thunderbird reported the voluntary closure of the Gran Plaza property in Guatemala City due to numerous factors including continuing underperformance caused by decreased customer visitation resulting from a degradation of security in the area surrounding the property. On 3 August 2009, Thunderbird's two remaining properties, Fiesta Intercontinental Guatemala and Video Suerte Mazatenango, were ordered closed under the authority of a Guatemalan federal legal proceeding in Guatemala City. Thunderbird's Guatemalan lawyers are reviewing the basis of the closure and assessing a course of action to re-open the facilities. Thunderbird has been operating legally in Guatemala since 1997 and we intend to vigorously defend our legal rights. These two facilities represent approximately 5.1 percent of the Group's gaming positions worldwide and only approximately 2.3 percent of our total sales. Due to these recent events, the Group has been working with various lenders to our Guatemala operations to extend repayment terms while we seek to re-open the two locations.

Capital resources and liquidity

As previously reported, in response to the effects of the worldwide economic slowdown and in light of our high short term principal debt payments, the Group continues to renegotiate payment terms with certain of our lenders to extend amortization periods. While there can be no assurances that we will reach accommodations with all of our lenders, during April, May and June of 2009, the Group negotiated a deferment of principal debt payments with more than 25 private lenders who held over 50 separate loans. This set of deferred principal payments totals approximately $6.3 million on approximately $24.0 million of aggregate principal amount of loans. These principal payments were deferred for approximately 12 months from the date of deferral. The Group also recently obtained six month extensions on the maturity dates for $4 million in debt that matured during July 2009. In addition, effective 1 August 2009 the Group's Board of Directors and senior executives elected to defer monthly Board fees and 20 percent of executive salaries until the Group's cash flow is stabilized. The Group will provide a complete business update in the half-yearly financial report 2009 which will be filed by 27 August 2009.


Thunderbird Resorts Inc. is an international provider of branded casino and hospitality services, focused on markets in Central and, South America, Southeast Asia and India. Our mission is to "create extraordinary experiences for our guests." Additional information about the Group is available on its World Wide Web site at

Cautionary Notice: This release contains certain forward-looking statements within the meaning of the securities laws and regulations of various international, federal, and state jurisdictions. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential revenue and future plans and objectives of the Group are forward-looking statements that involve risk and uncertainties. There can be no assurances that such statements will prove to be accurate and actual results could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Group's forward-looking statements include competitive pressures, unfavorable changes in regulatory structures, and general risks associated with business, all of which are disclosed under the heading "Risk Factors" and elsewhere in the Group's documents filed from time-to-time with the NYSE Euronext Amsterdam and other regulatory authorities.

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