SOURCE: Shingle Springs Band of Miwok Indians
PLACERVILLE, CA--(Marketwired - Jul 18, 2013) - The Shingle Springs Band of Miwok Indians (Tribe), a federally-recognized Indian tribal government that owns and operates Red Hawk Casino, today announced that on July 17, 2013, it entered into a $57.1 million Debt Termination Agreement with Lakes Entertainment, Inc. (Lakes) relating to loans Lakes made to the Tribe for the development of Red Hawk Casino and Lakes management of, and fees in connection therewith, Red Hawk Casino.
Red Hawk Casino opened in December 2008. The Debt Termination Agreement represents an early conclusion of the original seven-year term agreement which otherwise ends in 2015. The Debt Termination Agreement includes a lump sum payment by the Tribe to Lakes of $57.1 million on or before Dec. 31, 2013, subject to extension for 120 days. This payment will constitute full and final payment of all debt owed to Lakes as of the date the payment is made (Payment Date). Upon the Payment Date, the management agreement under which Lakes is managing Red Hawk Casino will terminate.
Until the Payment Date, Lakes will continue to manage Red Hawk Casino and all existing agreements between the Tribe and Lakes will remain in effect. If all of the conditions under the Debt Termination Agreement, including the $57.1 million debt payment, are not met, then all existing agreements between the Tribe and Lakes will remain in effect until their original expiration under their existing terms.
Tribal Chairman Nicholas H. Fonseca expressed his appreciation for the long-term relationship with Lakes, Chairman Lyle Berman, and President Timothy Cope. "The Tribe is fully confident in its ability to operate and manage Red Hawk Casino. We have an excellent, experienced executive team led by General Manager Bryan deLugo."