SOURCE: Kinbasha Gaming International, Inc.
HITACHI, JAPAN--(Marketwire - Mar 6, 2013) - Kinbasha Gaming International, Inc. (OTCQX: KNBA), owner and operator of retail pachinko gaming centers nationally in Japan, today announced it has made the final payment as per its debt settlement agreement with ISO Debt Recovery K.K. in connection with debt owed to Tokyo Star Bank K.K., eliminating approximately $6 million in principal, interest and penalties. As per the agreement, payments from Kinbasha totaled approximately $737,000 through February 28, 2013, resulting in a net gain on settlement of approximately $5.2 million.
"This is a significant event which wipes out $6 million in debt," said Masatoshi Takahama, Chief Executive Officer of Kinbasha. "This demonstrates Kinbasha's ability to reduce its debt through negotiations with our lenders."
Since 2006, Kinbasha has worked with its lenders and in many cases has obtained forbearances and loan modifications that have allowed the company to effectively extend the maturity of its debt through interest only and/or reduced principal payments, generally negotiated on a six month or annual basis.
Mr. Takahama continued, "We look forward to continuing our debt settlement initiatives while simultaneously improving our financial position. As we continue to realize new operational milestones, we remain highly focused on improving our financial metrics on all fronts, and carrying forward with our expansion initiatives in Japan."
As Kinbasha continues to pay down its debt, management plans to obtain additional capital to build out and/or acquire pachinko parlor stores within greater metropolitan areas in Japan. Kinbasha plans to shift the company's strong branding, successful operations teams and proprietary analytics technology to areas where pachinko stores are more profitable, such as Tokyo, while continuing to streamline operations.
About Kinbasha Gaming International, Inc.
Based in Hitachi City, Japan, Kinbasha Gaming International, Inc. (OTCQX: KNBA) is a retail gaming company that operates 21 pachinko parlors in the Japanese prefectures of Ibaraki, Tokyo and Chiba. For more than 50 years, the company's retail gaming establishments have offered customers the opportunity to play the games of chance known as pachinko and pachislo. Pachinko is played on a device which resembles a vertical pinball machine and pachislo is played on a machine that resembles a western style slot machine. Pachinko and pachislo are collectively ranked as Japan's largest leisure activity. For more information on Kinbasha, please visit: www.kinbashainc.com
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Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the Company's business and operations; business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.