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 earlies event
reported): July 19, 1996
ELSINORE CORPORATION
(Exact name of registrant as specified in its charter)
STATE OF NEVADA 1-7831 88 0117544
(State or other (Commission File (IRS Employer
jurisdiction) Number) of Incorporation
Identification No.)
202 Fremont Street 89101
Las Vegas, Nevada (Zip Code)
(Address of principal
executive offices)
Registrant's telephone, including area code: (702) 385-4011
Item 5. Other Events.
On July 19, 1996, Elsinore Corporation issued a press
release, attached hereto as an exhibit, announcing that at a
hearing on July 18, 1996 in the Chapter 11 proceedings of
Elsinore and a number of its subsidiaries pending in the
United States Bankruptcy Court for the District of Nevada,
the Bankruptcy Court indicated that it intends to enter an
order confirming a plan of reorganization for Elsinore and
certain of the other debtors in the proceeding.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
Exhibit No. Description
99 Press Release dated July 19, 1996.
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SIGNATURE:
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
Current Report on Form 8-K to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: July 22, 1996
ELSINORE CORPORATION
By:/s/ Thomas E. Martin
THOMAS E. MARTIN, President
and Chief Executive Officer
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EXHIBIT 99:
FOR IMMEDIATE RELEASE
Friday, July 19, 1996
BANKRUPTCY COURT ORDERS CONFIRMATION OF
PLAN OF REORGANIZATION FOR ELSINORE
LAS VEGAS, Nevada, July 19, 1996...Elsinore Corporation (ASE/PSE:ELS) today
announced that, at a hearing on July 18, 1996 in the Chapter 11 proceedings of
Elsinore and a number of subsidiaries pending in the United States Bankruptcy
Court for the District of Nevada, the Bankruptcy Court indicated that it
intends to enter an order confirming a plan of reorganization for Elsinore and
certain of the other debtors.
In the plan of reorganization to be confirmed, the Bankruptcy Court
denied Elsinore's efforts to obtain a recovery for its existing shareholders.
The existing common stock of Elsinore now outstanding will be canceled
pursuant to the plan, and the shareholders will receive no distribution.
Under the terms of the plan to be confirmed, Elsinore's 12.5%
noteholders will receive 97.5% of the new common stock in reorganized Elsinore
in exchange for a reduction in their claims from approximately $61 million to
$30 million, and a new cash contribution of $5 million. The remaining $30
million claim will be paid over time with interest at a rate of 13.5% per
annum. Elsinore's 20% senior noteholders will retain their claims ($3 million
in outstanding principal, plus accrued interest, costs and fees), which will
be paid over time with interest at a rate of 11.5% per annum. Elsinore's
convertible subordinated noteholders, which hold claims of approximately $1.5
million, will receive 2.5% of the new common stock in reorganized Elsinore.
The plan further provides that distributions of $1.5 million will be
made to general unsecured creditors over a three year period. The U.S.
Internal Revenue Service ("IRS"), which has asserted claims of approximately
$3 million, will be paid over time, with the unsecured portion of the IRS
claim treated the same (with the same payment percentage) as other unsecured
creditors.
Elsinore's senior management, Thomas E. Martin, president and chief
executive officer, and Frank L. Burrell, Jr., Chairman of the Board, will
remain with Elsinore until shortly after the Bankruptcy Court enters an order
confirming the plan of reorganization. Thereafter, Elsinore will be managed
by Riviera Gaming Management in accordance with interim and longer term
management agreements to be executed under the plan. The balance of jobs for
the 1,000 or so employees of Elsinore and its subsidiaries will be unaffected
by confirmation of the plan.
Trading in the company's common stock continues to be halted by the
American Stock Exchange. As previously reported, the Exchange intends to
review the company's continued listing eligibility concurrently with its
progress in the Chapter 11 proceeding.
Elsinore Corporation, through a subsidiary, owns and operates the Four
Queens Hotel and Casino, a downtown Las Vegas hotel and casino offering 690
rooms, meeting facilities, four restaurants, 1050 slot machines, and numerous
blackjack, craps and other table games.
For information on Elsinore Corporation via facsimile at no cost, simply
call 1-800-PRO-INFO and dial company code 177.
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