Subsidiary Of President Casinos, Inc. Files For Reorganization

Apr 19, 2001, 01:00 ET from President Casinos, Inc.

    ST. LOUIS, Mo., April 19 /PRNewswire/ --
 President Casinos, Inc. (OTC Bulletin Board:   PREZ) announced today that its
 indirectly owned subsidiary, President Broadwater Hotel, LLC, had filed for
 reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United
 States Bankruptcy Court for the Southern District of Mississippi.  President
 Broadwater Hotel, LLC owns the Broadwater Hotel property in Biloxi,
 Mississippi, together with an adjoining golf course, on a total of
 approximately 260 acres.  In addition, President Broadwater Hotel, LLC is the
 landlord with respect to the President Casinos' Mississippi gaming subsidiary,
 leasing to it the use of the marina adjoining the Broadwater Hotel.
     It is anticipated that this filing will impact the holder of approximately
 $37 million of first mortgage indebtedness related to the Broadwater property
 due to the Company's inability to timely repay the principal amount of the
 loan at maturity.  The bankruptcy is not expected to impact any parties doing
 business with the Biloxi casino.  It also is not expected to affect the
 employment relationships at the Broadwater or amenities provided to the
 hotel's guests and customers of the Mississippi gaming operations.  In
 addition, no impact is anticipated on either the Missouri gaming company or
 the parent, President Casinos, Inc.
     President Casinos, Inc. previously reached a tentative agreement with a
 substantial majority of its bondholders with respect to debt related to the
 parent company and is pursuing plans to repay this debt.
     John S. Aylsworth, President and Chief Operating Officer said, "While we
 regret having to reorganize the President Broadwater Hotel subsidiary under a
 court-overseen process, we have not yet been able to realize the value
 inherent in our Biloxi property.  We are continuing to pursue this effort.  We
 remain confident that the value of the property in Biloxi exceeds any
 liabilities that may be associated with it and, given a sufficient period of
 time, we believe we will be able to realize fully the value of the Biloxi
 property.  Meanwhile, operations in St. Louis continue to improve, with gaming
 revenues for the first full three months (January through March) at our new
 location up 19% over the prior year, and with March 2001 the highest gaming
 revenue month in our history."
     President Casinos, Inc. owns and operates dockside gaming facilities in
 Biloxi, Mississippi and downtown St. Louis, Missouri north of the Gateway
 Arch.
     This press release may contain financial projections or other
 forward-looking statements made pursuant to the safe harbor provisions of the
 Securities Reform Act of 1995.  Such statements involve risks and
 uncertainties which may cause actual results to differ materially.  These
 risks include: inability to obtain adequate financing or financing on terms
 acceptable or favorable to the Company; inability to restructure existing debt
 obligations; difficulties in expanding into new business activities; and other
 risks described in the Company's SEC filings, including the Company's Annual
 Report on Form 10-K for the fiscal year ended February 29, 2000, as amended,
 and the Company's subsequent Reports on Form 10-Q for the quarters ended
 May 31, 2000, August 31, 2000 and November 30, 2000, all of which risks are
 incorporated by reference into this press release.
 
 

SOURCE President Casinos, Inc.
    ST. LOUIS, Mo., April 19 /PRNewswire/ --
 President Casinos, Inc. (OTC Bulletin Board:   PREZ) announced today that its
 indirectly owned subsidiary, President Broadwater Hotel, LLC, had filed for
 reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United
 States Bankruptcy Court for the Southern District of Mississippi.  President
 Broadwater Hotel, LLC owns the Broadwater Hotel property in Biloxi,
 Mississippi, together with an adjoining golf course, on a total of
 approximately 260 acres.  In addition, President Broadwater Hotel, LLC is the
 landlord with respect to the President Casinos' Mississippi gaming subsidiary,
 leasing to it the use of the marina adjoining the Broadwater Hotel.
     It is anticipated that this filing will impact the holder of approximately
 $37 million of first mortgage indebtedness related to the Broadwater property
 due to the Company's inability to timely repay the principal amount of the
 loan at maturity.  The bankruptcy is not expected to impact any parties doing
 business with the Biloxi casino.  It also is not expected to affect the
 employment relationships at the Broadwater or amenities provided to the
 hotel's guests and customers of the Mississippi gaming operations.  In
 addition, no impact is anticipated on either the Missouri gaming company or
 the parent, President Casinos, Inc.
     President Casinos, Inc. previously reached a tentative agreement with a
 substantial majority of its bondholders with respect to debt related to the
 parent company and is pursuing plans to repay this debt.
     John S. Aylsworth, President and Chief Operating Officer said, "While we
 regret having to reorganize the President Broadwater Hotel subsidiary under a
 court-overseen process, we have not yet been able to realize the value
 inherent in our Biloxi property.  We are continuing to pursue this effort.  We
 remain confident that the value of the property in Biloxi exceeds any
 liabilities that may be associated with it and, given a sufficient period of
 time, we believe we will be able to realize fully the value of the Biloxi
 property.  Meanwhile, operations in St. Louis continue to improve, with gaming
 revenues for the first full three months (January through March) at our new
 location up 19% over the prior year, and with March 2001 the highest gaming
 revenue month in our history."
     President Casinos, Inc. owns and operates dockside gaming facilities in
 Biloxi, Mississippi and downtown St. Louis, Missouri north of the Gateway
 Arch.
     This press release may contain financial projections or other
 forward-looking statements made pursuant to the safe harbor provisions of the
 Securities Reform Act of 1995.  Such statements involve risks and
 uncertainties which may cause actual results to differ materially.  These
 risks include: inability to obtain adequate financing or financing on terms
 acceptable or favorable to the Company; inability to restructure existing debt
 obligations; difficulties in expanding into new business activities; and other
 risks described in the Company's SEC filings, including the Company's Annual
 Report on Form 10-K for the fiscal year ended February 29, 2000, as amended,
 and the Company's subsequent Reports on Form 10-Q for the quarters ended
 May 31, 2000, August 31, 2000 and November 30, 2000, all of which risks are
 incorporated by reference into this press release.
 
 SOURCE  President Casinos, Inc.