The Company may realize little or no value for its loan, which could result in additional charges of up to $27.9 million (which represents the Company’s remaining loan and loan commitments, net of reserves, at December 31, 2017).

SDGV’s loans to JIVDC remain outstanding however, SDGV’s only material recourse for collection of these loans is from positive cash flow, if any, from the Casino operations or from the sale of these loans to a third party. “SDGV’s loans and any future funding obligations are subordinated to the substantial senior debt on the property. Based on the pending termination of various agreements between the parties, the Company recorded additional charges of $29.4 million on the loan and unfunded loan commitments to JIVDC for the fourth quarter and year-ended December 31, 2017. These results included an impairment charge of $48.5 million on the Company’s loan and unfunded loan commitments to JIVDC. On February 8, 2018, the Company issued a press release summarizing its results for the fourth quarter and year ended December 31, 2017. As of December 31, 2017, these future funding commitments totaled approximately $29 million. “SDGV previously made a $98 million loan to JIVDC for the construction, development, equipment and operations of the Casino and, in addition, provided additional delayed draw term loans and a limited completion guarantee for certain post-opening construction costs related to roadway improvements. The parties anticipate an approximately ninety-day period for an orderly transition of the management of the Casino to JIVDC, beginning today. The termination of the management and other services provided by the Company and SDGV, as applicable, will be effective on May 28, 2018. “The Company, San Diego Gaming Ventures, LLC, a subsidiary of the Company (“SDGV”), the Jamul Indian Village of California, a federally recognized Indian tribe (the “Jamul Tribe”), and Jamul Indian Village Development Corporation (“JIVDC”), a body corporate and politic existing as an instrumentality of the Jamul Tribe, have mutually agreed that the Company and SDGV, as applicable, will no longer manage the Hollywood Casino Jamul-San Diego, a gaming and entertainment facility owned by JIVDC (the “Casino”), and will cease to provide branding and development services. Penn National Gaming, the nationwide financial interest behind Hollywood Casino, appears to be pulling the plug on operating its Jamul location, which opened amid controversy only 16 months ago after a years-long battle with the local community.Įxcerpts below from Penn’s February 27, 2018, filing with the Securities and Exchange Commission, seem to show the company transitioning management to the Jamul Indian Village tribe.

Hollywood casino jamul entertainment