Chukchansi Gold Resort & Casino Enters Into Restructuring Support Agreement with Bondholder Group

COARSEGOLD, Calif., Dec. 15, 2011 /PRNewswire/ -- The Chukchansi Economic Development Authority ("CEDA" or the "Authority"), operator of the Chukchansi Gold Resort and Casino (the "Resort") in Coarsegold, California, announced today that, it has reached a restructuring support agreement (the "Restructuring Support Agreement") with a group of bondholders (the "Bondholder Group") representing over 60% of CEDA's  8% Senior Notes due 2013 and Floating Rate Senior Notes due 2012 (collectively, the "Notes") pursuant to which the obligations of the Authority under the Notes are contemplated to be restructured.

Reggie Lewis, Chairman of the Tribal Council of the Picayune Rancheria of the Chukchansi Indians, commented:  "We are very pleased to be partnering with the Bondholder Group to enable us to achieve a long-term capital structure solution.  We believe this restructuring, if completed, will help pave the way for our continued success and growth."

As previously announced, on November 15, 2011, the Authority did not make a scheduled payment of interest on the Notes.  In connection with entering into the Restructuring Support Agreement, on December 15, 2011, the Authority made the payment of interest that was due on November 15, 2011, together with interest on the missed payment.

Chukchansi Economic Development Authority

The Authority is a wholly-owned unincorporated enterprise of the Picayune Rancheria of the Chukchansi Indians, a federally recognized Indian tribe (the "Tribe"). The Tribe has approximately 1,100 enrolled members and operates the Resort on an approximately 48.5-acre property near Coarsegold, California.

This press release is for informational purposes only and is not an offer to buy or to sell, or the solicitation of an offer to buy or to sell, any security.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "will," "may," "should," "would," "could," "projects," "targets," "views," negative or other variations of these words, and similar expressions and other words of similar import and similar references to future periods. Forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances and other factors that are difficult or impossible to predict and which may cause actual results, performance and achievements, or industry results, to be materially different from any future results, outcomes, performance or achievements expressed or implied by such forward-looking statements.  Such statements are neither statements of historical fact nor guarantees or assurances of future performance. Actual results may differ materially from those expressed or implied by the forward-looking statements, and forward-looking statements should not be regarded as a representation by any person that such forward-looking statements will be achieved.  For all of the foregoing reasons, we caution you against relying on any forward-looking statement contained in this press release.

Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, regional, national or global political, economic, business, competitive, market, and regulatory conditions and any, some or all the following, in addition to other risks: (i) our substantial indebtedness, significant financial commitments, and the possible exercise of remedies by our creditors; (ii) our ability to service or refinance our indebtedness and to make planned expenditures, as well as our ability to negotiate and consummate a restructuring with our creditors on satisfactory terms, or at all; (iii) the impact of economic, competitive, demographic, business, regulatory, market, financial, credit and other conditions on the local and regional market in which the Resort operates and the locations in which our customers reside; (iv) restrictions and limitations imposed by the documents governing our indebtedness, including the indenture governing our 8% Senior Notes due 2013 and Floating Rate Senior Notes due 2012; (v) intense competition from our peers in the market in which we operate and with respect to leisure and travel locations generally; (vi) the dependence of the Resort on a single gaming market; (vii) unusual maintenance, repair or capital expenditure requirements; (viii) the susceptibility of leisure and business travel to global geopolitical events, including terrorist attacks, acts of war or hostility, or other similar events; (ix) our extension of credit to certain of our customers and the fact that we may not be able to collect gaming receivables from our credit players; (x) the fact that we are subject to extensive regulation, and the related costs of compliance or failure to comply with such regulations; (xi) the outcome of pending and potential future litigation claims against us; (xii) our labor relations and the fact that a significant portion of our labor force is covered by a collective bargaining agreement; (xiii) dependence on key personnel; and (xiv) a history of defaults and disputes under certain agreements.

Any forward-looking statement made by us herein speaks only as of the date on which it is made. Other factors or events that could cause actual results to differ may emerge from time to time, and it is not possible for us to predict or identify all such factors. Consequently, this disclosure does not constitute a complete discussion of all potential risks or uncertainties. We undertake no obligation to update any forward-looking statement (or any other statement contained herein), except as may be required by law. You are advised to consult all prior and later disclosures we make on related subjects.

SOURCE Chukchansi Economic Development Authority