Friday, February 12, 2010

Thunderbird provides update on Panamanian and Indian projects

BVI-registered company Thunderbird Resorts Inc., an international provider and operator of branded casinos and gaming facilities in a number of countries worldwide, has reported an update on the proposed transaction with Merit Gaming, LLC.

In December 2009, Thunderbird Resorts Group and Merit Gaming, LLC had executed a letter of intent for the purchase and sale of Thunderbird's 63.63% stake in International Thunderbird Gaming (Panama) Corporation, which owns six casinos in Panama. The transaction was subject to the fulfillment of certain conditions, including the expiration of certain first rights of refusal. Recently, the Thunderbird Group was notified that a holder of first right of refusal, Powelton Company, Inc., which is a privately held company incorporated under the law of the BVI, exercised its right to match the letter of intent between Thunderbird and Merit. While there is no assurance of closing the deal, Thunderbird and Merit will move forward to do it.

Also, Thunderbird Group announced an update on agreements with an Indian group to form Daman Hospitality Private Limited to develop and own a resort in Daman, India. Along with its joint venture partners, Thunderbird invested $16mln in the project, which requires approximately $13.5mln in additional equity and $26mln in senior secured debt. The $13.5mln has now been funded of which $7.5mln was funded by an international private equity firm in November-December 2009. Also, the Group announced that DHPL consummated a loan facility with a consortium of Indian banks for US$26mln in senior secured financing that has been guaranteed by the BVI Group and its Indian partner. Thunderbird anticipates the first funding of this loan to occur within the next 15 days.