The Real Deal Miami

Judge slashes Miami Jai-Alai lender’s claim

ABC Funding's bid for casino's auction reduced by about $37M

February 25, 2014 12:00PM

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3500 Northwest 37th Avenue in Miami

3500 Northwest 37th Avenue in Miami

A bankruptcy judge in Miami slashed the amount Casino Miami Jai-Alai’s lender could claim for its credit bid in next month’s auction of the casino’s parent company.

U.S. Bankruptcy Judge Robert Mark ruled that ABC Funding could not include a nearly $34 million repurchase option or $3.5 million in prepayment premiums and interest as part of the credit bid, Daily Business Review reported. The judge also ordered mediation between casino parent Florida Gaming, ABC Funding and the unsecured creditors committee with the goal of reaching a global settlement.

ABC’s $34 million claim can now be converted into a common stock interest and falls behind the rest of Florida Gaming’s creditors in the pecking order.

The auction is scheduled for March 25. [Daily Business Review]Eric Kalis

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