Casino Miami Jai-Alai Made At Least $17 Million Last Year, Lawsuit Claims
But Florida Gaming Corp. minority shareholder Herbert Silverberg won't have any of it. He is suing Florida Gaming in Delaware Chancery Court to block the sale and claiming the father-and-son owners run the place as a "private fiefdom."
Silverberg claims the deal is stacked in favor of Florida Gaming Corp. Chairman W. Bennett Collett and CEO W. Bennett Collett Jr., the father-son team that runs the company. According to the complaint, the Colletts "have run the company as a private fiefdom, failing to hold shareholder meetings in years and causing Florida Gaming to engage in countless self-dealing transactions."
The sale will result in a reduced payout for Florida Gaming but provide valuable payments for the Colletts, who control the company and its three-member board, the lawsuit alleges.
Florida Gaming defaulted on an $87 million senior secured term loan in August 2012 and in late November announced plans to sell the Miami and Ft. Pierce parimuteuls to Silvermark LLC in a deal valued at $129.4 million, according to the suit.
But the deal will only net Florida Gaming $8.2 million, Silverberg said, whereas a competing offer promised a net value of $19.4 million.
(Neither Silverberg nor Collett's attorneys returned messages about the suit; we'll update the post when they do.)
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