UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 21, 1998
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COLONIAL DOWNS HOLDINGS, INC.
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(Exact name of registrant as specified in its charter)
VIRGINIA 333-18295 54-1826807
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
10515 Colonial Downs Parkway, New Kent, Virginia 23124
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(Address of principal executive offices)
Registrant's telephone number, including area code (804) 966-7223
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(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS
Strategic Financial Plan
After the monthly Virginia Racing Commission meeting on October 21, 1998,
Jeffery P. Jacobs, Colonial Downs Holdings, Inc.'s (the "Company") President and
Chief Executive Officer, announced that in the next 60 days the Company expects
to announce a strategic plan designed to improve the Company's financial
condition. In preparing the plan, the Company is considering all options
including reorganization under Chapter 11. Mr. Jacobs also announced that the
Company will seek the support of stakeholders in the Virginia horse industry
including the Virginia Racing Commission and horsemen's groups to pursue a
legislative amendment to the law that requires the Company to race 150 days a
year by the year 2002. Mr. Jacobs stated that, "The law, in its present form,
impedes increasing the number of live race days in Virginia because it is an
impediment to raising additional capital and consequently the expansion of the
Virginia horse industry. It has the exact opposite effect on the growth of live
racing that it was intended to have. I am hopeful of potential legislative
support because Colonial Downs means jobs, economic development, tourism and tax
revenue to the citizens of Virginia."
Referendum
The Company also announced that it is unlikely to seek a referendum for an
additional racing center in the short-term. Mr. Jacobs stated, "I understand
political winds, and the current political winds are not conducive to passing a
racing center referendum in Virginia. However, I will continue to explore other
investment opportunities on behalf of Colonial Downs that will allow us to grow
our number of live thoroughbred race days."
Earnings Forecast
The Company is compiling its 3rd quarter earnings results and warned that
earlier predictions of a loss of $4-6 million for 1998 appear to be consistent
with 3rd quarter results.
New Director of Marketing
Darrell Wood has been appointed as the new Director of Marketing. Wood had
served as the Director of Public Relations for Colonial Downs and served in a
similar position at Buffalo Raceway in Buffalo, New York before coming to
Colonial Downs in the spring of 1998.
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Forward-Looking Statements
Statements regarding anticipated financial plans, referenda, the opening
of additional racing centers, earnings and certain other statements contained in
this report are forward-looking statements and, as such, involve known and
unknown risks, uncertainties, and other factors which may cause the actual
results, performance, or achievements of the Company to be materially different
from any future results, performance, or achievements, expressed or implied by
such forward-looking statements. Such potential risks, uncertainties, and
factors include, but are not limited to, acts by parties outside the control of
the Corporation, including the Virginia Racing Commission, political trends,
risks of construction delays, and governmental regulation, including licensing
of additional racing centers. The forward-looking statements contained herein
speak only as of the date of this report.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
COLONIAL DOWNS HOLDINGS, INC.
October 30, 1998 /s/ Ian M. Stewart
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Date Ian M. Stewart, Chief Operating Officer
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