Minnesota-Based Developer Seeks Funds for Shingle Springs, Calif., Casino
SHINGLE SPRINGS, California As reported by the Sacramento Bee: "For six years Lakes Entertainment Inc., a Minnesota-based casino development company, has been fending off lawsuits, dealing with angry neighbors and otherwise struggling to launch an Indian casino off Highway 50 in Shingle Springs.
"Now Lakes is having to scramble for funds.
"The company's losses are growing because of ongoing development costs at its casino projects in Shingle Springs and elsewhere. In November, Lakes said it needed fresh cash to keep going. On Dec. 16, the company said it had worked out a $20 million line of credit from a partnership affiliated with its chairman and chief executive.
"Lakes also is considering selling all or part of its stock in a company that produces a series of poker tournaments for television Lakes' sole source of revenue, according to a Securities and Exchange Commission filing.
"Meanwhile, Lakes' stock has been delisted from the Nasdaq national market due to a dispute with the Securities and Exchange Commission. The company has resolved the dispute and announced Friday that it has applied for relisting on Nasdaq.
"Where that leaves the proposed Foothill Oaks casino in Shingle Springs is hard to say. Lakes' Web site says construction is scheduled to begin in early 2006, but a court ruling about the potential environmental impact is likely to delay the project..."
2005-12-28
