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) July 8, 1997
DUNES HOTELS AND CASINOS INC.
(Exact name of Registrant as specified in charter)
New York
(State or other jurisdiction of incorporation)
1-4385 11-1687244
(Commission File Number) (IRS Employee Identification No.)
4045 South Spencer, Las Vegas, Nevada 89119
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (702) 732-7474
Not Applicable
(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
Dunes Hotels and Casinos Inc. ("Dunes") previously reported
the matter known as FEDERAL DEPOSIT INSURANCE CORPORATION
("FDIC"), ET AL. V. JOHN B. ANDERSON, ET AL. (COLLECTIVELY, THE
"ANDERSON PARTIES), United States District Court, District of
Nevada ("Nevada District Court"), Case No. CV-S-95-00679-PMP
(LRL). Mr. Anderson, through his ownership of Cedar Development
Co., the parent company of Baby Grand Corp. and J.B.A.
Investments, Inc., owns approximately 4,280,756 shares or 67.2%
of the outstanding common stock of Dunes. As previously
reported, 3,000,000 shares or 47.1% of the outstanding common
stock of Dunes (the "Pledged Dunes Shares") are pledged as
collateral in favor of entities of which the FDIC is a successor
and/or assign. On June 3, 1997, the FDIC filed a motion for a
declaration that the FDIC has the right to exercise voting rights
to the Pledged Dunes Shares, and requiring that stockholder
meetings be held for Dunes and certain other entities. On July
8, 1997, the Nevada District Court granted the FDIC's motion.
Dunes has rights to approximately 1,280,756 shares or 20.1% of
the outstanding common stock of Dunes as a result of a pledge in
favor of M&R Investment Company, Inc., an indirect wholly-owned
subsidiary of Dunes.
Dunes does not know when the FDIC will attempt to exercise
voting rights to the Pledged Dunes Shares, or whether the
Anderson Parties have any grounds to appeal the order of the
Nevada District Court, or, if such grounds to appeal exist,
whether the Anderson Parties will appeal the order or otherwise
contest an assertion by the FDIC to exercise voting rights to the
Pledged Dunes Shares and certain other pledged shares. Should
the FDIC successfully assert voting rights over the Pledged Dunes
Shares, there will be a change in control of Dunes. Although
Dunes is not a party to this action, a change in control of Dunes
may adversely effect Dunes' ability to collect on certain
obligations owed to Dunes by the Anderson Parties, including a
loan in the amount of approximately $2,083,735 (including
interest of approximately $167,000) due to M&R Investment
Company, Inc. from Baby Grand Corp. and secured by approximately
1,280,756 shares of Dunes common stock. Dunes cannot predict
the outcome of the foregoing at this time.
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SIGNATURES
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 hereunto duly authorized.
Dunes Hotels and Casinos Inc.
(Registrant)
Date: July 17, 1997 By:/s/ James H. Dale
JAMES H. DALE, TREASURER
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