Pennsylvania Gaming Control Board approves petition to establish protocol that would allow owner Louis DeNaples to make cash infusion into property
Mount Airy Casino Resort and Trustee Anthony F. Ceddia, Ph.D. today received approval of the Pennsylvania Gaming Control Board of a new protocol that will help facilitate the continued financial health and growth of property. The protocol will enable the casino resort to move forward with capital projects and provide additional liquidity by establishing a process that would allow Mount Airy Casino Resort Owner Louis DeNaples to provide the resort with funds for certain expenditures and capital projects if needed.
This effort to address potential liquidity concerns comes in the midst of a national economic downturn and "tight liquidity" in the banking and lending markets. In a report released this week, Fitch Ratings noted that these trends have impacted the entire gaming industry. Other gaming properties have the ability to rely on their corporate parent companies for cash infusions when needed, although -- as the Fitch analysis points out -- the liquidity of those parent companies is becoming an increasing concern within the industry. In contrast, Mount Airy Casino Resort, as an independent property, must rely on Owner Louis DeNaples to infuse cash and ease liquidity pressures.
The petition approved today by the Pennsylvania Gaming Control Board would establish a protocol by which Owner Louis DeNaples could infuse cash -- if needed -- into the property to meet its real estate tax and local share assessment obligations and enable the property to move forward with potential capital projects such as the refurbishment of the resort's golf course and construction of a swimming pool. Mr. DeNaples has indicated to the Trustee that he remains fully supportive of Mount Airy.
"Mount Airy Casino Resort is and remains a growing, viable business. This is a proactive effort to address possible liquidity concerns - concerns that are impacting the entire gaming industry," said Tony Ceddia, the Trustee of Mount Airy Casino Resort. "The protocol that was approved by the Board today simply provides Mount Airy Casino Resort with added financial flexibility in a difficult national economic situation. This access to capital will enable Mount Airy Casino Resort to address possible liquidity concerns now and in the future and allow the property to move forward with capital projects that will further enhance the property."
"We are continuing to experience strong growth in revenues - most notably a 31 percent increase in revenues or the month of November compared to a year ago," said Joe D'Amato, Chief Executive Officer of Mount Airy Casino Resort. "But there is room for further improvement. Capital projects, such as the addition of a swimming pool and the rehabilitation of the golf course, will help to fuel our continued growth."
The Fitch Ratings report detailed some of the financial challenges facing the gaming industry, including pressure on operating cash flow, current depressed debt prices, tight credit markets and limited refinancing options. Mount Airy Casino Resort is working to address all of these challenges by increasing its marketing efforts, engaging in ongoing negotiations with its lenders regarding an amendment to its credit facility, and improving liquidity through the approval of this new protocol. Any infusion of cash by Mr. DeNaples would provide funding while the negotiations with the lenders continue and any amended credit facility is reviewed for approval by the Pennsylvania Gaming Control Board.
Dr. Ceddia emphasized that while Louis DeNaples remains supportive of Mount Airy Casino Resort, the protocol approved by the Gaming Control Board require that he has no control or input over what projects or funding needs are funded through the cash infusions he makes. Rather, the payments will be made to a separate, dedicated account controlled by the Trustee to pay out creditors, vendors, and contractors.
CEO D'Amato also emphasized that Mount Airy Casino Resort has been a good corporate citizen, employing about 950 people, 98 percent of whom reside in Northeastern Pennsylvania, and providing those employees with excellent benefits including healthcare coverage. Mount Airy Casino Resort was also recognized for having one of the most diverse workforces in the gaming industry in the Commonwealth. Mount Airy Casino Resort has also remained true to its commitment to the local economy by utilizing local vendors for its purchasing and service needs. In addition, the casino resort has also generated nearly $96 million in taxes to state, county, and local government since its opening on October 22, 2007.
About Mount Airy Casino Resort
The lakeside Mount Airy Casino Resort is located in the heart of the beautiful Pocono Mountains. The casino resort features a mix of more than 2,500 of the latest slot machines, including the newest themed video slots, electronic table games, as well as progressive jackpots. Dining options at the new resort include red Steakhouse, offering prime aged steaks and the freshest seafood; Le Sorelle Cucina, offering Italian delicacies; Betty's Diner, featuring All-American dining for breakfast, lunch, and dinner; and The Buffet at Mount Airy, featuring seven distinct stations.
Each room and suite in Mount Airy Casino Resort's luxury hotel was designed with the goal of obtaining a four-star rating, making them the highest quality rooms available in the Pocono Mountains. The casino resort's upscale Gypsies Lounge Nightclub, which offers a mix of live bands and other acts, has one of the best sound systems in the Mid-Atlantic region. The Spa at Mount Airy provides guests with a range of invigorating spa treatments, including facials, skin treatments, hair styling, personalized massages and more. Reservations can be made by calling 1-877-MT-AIRY-1.
SOURCE Mount Airy Casino Resort
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