Majestic Clears Hurdles in Fitzgeralds Purchase
Country's Only African American Casino Owner "One Step Closer"
March 20, 2001 - Buffington Harbor, Ind. - Majestic Investor, LLC, a wholly owned subsidiary of Majestic Star Casino located in Gary, Ind., cleared another hurdle in its recently announced purchase agreement with Fitzgeralds Gaming Corporation to purchase three of Fitzgeralds casinos. Monday, a U.S. Bankruptcy Court in Reno, Nev., approved the sale and transfer of Fitzgeralds' assets at the three properties to Majestic.
Majestic's planned purchase of Fitzgeralds' casinos in Las Vegas; Tunica, Miss.; and Black Hawk, Colo., for $149 million in cash plus assumption of certain liabilities is contingent on licensing and financing. Majestic is in the process of applying for licensing in each of the gaming jurisdictions where Fitzgeralds operates and anticipates that appropriate approvals will be received later this year.
Majestic currently operates a casino riverboat on Lake Michigan in Gary, Ind., and is one of only a handful of privately held casino companies in the United States. Majestic's owner, Detroit businessman Don H. Barden, is the only African American in the world who wholly owns a casino company.
"With the addition of these three casinos, Majestic will operate in three of the top five gaming markets in the country," said Barden. "The Fitzgeralds purchase is the first step in our plan to grow Majestic beyond our home in Indiana. And, Monday's court approval of the sales brings us one step closer to that goal."
The Majestic Star Casino, LLC was founded in December 1993 as an Indian limited liability company, to develop a riverboat casino in the City of Gary. The Company's operations began on June 7, 1996.
This press release includes various "Forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which represents the Company's expectations or beliefs concerning future events. Statements containing expressions such as "believes", "anticipates", "estimates" or "Expects" used in the Company's press releases and reports filed with the Securities and Exchange Commission (including period reports on Form 10-K and Form 10-Q) are intended to identify forward-looking statements. All forward-looking statements involve risks and uncertainties. Although the Company believes its expectations are based upon reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurances that actual results will not materially differ from expected results. The Company cautions that these and similar statements included in this press release and in previously filed periodic reports are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, without limitation, the following: the ability to fund planned development needs and to service debt from existing operations and from new financing; increased competition in existing markets or the opening of new gaming jurisdictions, a decline in the public acceptance of gaming; the limitation, conditioning, suspension or obtaining of gaming licenses; increases in or new taxes imposed on gaming revenues, admission taxes or gaming devises; a finding of unsuitability by regulatory authorities with respect to the Company, its officers, or key employees; loss and/or retirement of key executives; significant increase in fuel or transportation prices; adverse economic conditions in the Company's markets; severe and unusual weather in the Company's market and adverse results of significant litigation matters.