A $40 million wire transfer ended the battle between the owners of the Horizon Hotel and Casino and Park Cattle Co., according to a federal filing that came to light on Thursday.
In an April 8 Securities and Exchange Commission filing, Tropicana Entertainment reported entering a stipulation to settle a civil lawsuit being adjudicated in Douglas County District Court on April 2.
Park Cattle Co. owns the property occupied by the Horizon and the MontBleu.
The agreement requires the owners of the Horizon and MontBleu to make cash payments totaling $165 million over the next three years. The first payment was made before the Minden jury was dismissed last week.
Under the agreement, both sides agreed to dismiss their claims with the condition that the payments be made.
In addition to the cash, Park Cattle receives certain protections in any future bankruptcy cases including any of the Horizon's owners, quarterly and annual financial statements, and the maintenance of permits and licenses held by the Horizon and MontBleu.
Should Tropicana fail to comply, Park Cattle has the right to seek a judgment of $290 million, which would be reduced by any payments already made.
Under the settlement, the Horizon's lease will end on March 31, 2011. If Tropicana can't renew the lease by April 2, 2011, Park could terminate the lease and take over the Horizon and operate it using its equipment for two years.
The MontBleu lease could be terminated Jan. 1, 2018, 10 years before its current lease, if Park paid Tahoe Horizon $15 million.
If Tropicana can't get consent of its lenders in the MontBleu Casino lease by Nov. 30, 2008, then Columbia Properties Tahoe has to pay Park $15 million. The deadline can be extended to May 31, 2009, by paying Park $1 million.
The lawsuit was filed Nov. 8, 2005, by Wimar Tahoe in response to a series of letters threatening eviction from the Park property.
Park expressed concerns about the upkeep of the property and Wimar sued to prevent any proceedings that would remove them. Park countersued Wimar.
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