Z Capital CEO James Zenni, who has been critical of Affinity’s board since last year, plans to nominate himself along with two other senior executives with his private equity group. In Nevada, Affinity operates six casinos, including the off-Strip Terrible’s and the three Primm properties at the California-Nevada border.Īffinity was created in December 2010 following the bankruptcy reorganization of Herbst Gaming. Las Vegas-based Affinity operates 12 casinos in four states: Nevada, Colorado, Iowa and Missouri. The annual shareholder meeting is scheduled for May 14 in Las Vegas. Silver Point is proposing that Affinity’s board be expanded to seven members.Īccording to a statement from Affinity, Silver Point plans to nominate a slate with “a majority of new directors.”Īffinity CEO David Ross, who is also a member of the company’s board, said Friday he couldn’t comment on the pending proxy battle. Meanwhile, Affinity announced earlier this week that company representatives met with members of Silver Point Capital, a Connecticut-based hedge fund that owns 24.9 percent of the company. Illinois-based private equity firm Z Capital Partners, which controls 30.5 percent of Affinity, said late Thursday that it intends to nominate three candidates for election to the company’s five-person board. Follow on Twitter.Z Capital CEO James Zenni (Las Vegas Review-Journal file)Ī potential proxy fight over control of Affinity Gaming involves the company’s two largest shareholders with separate proposals for changing the makeup of the casino operator’s board of directors. Instead it will work with Hotspur Casinos as the company begins to manage its own casinos.Ĭontact reporter Howard Stutz at or 70. Affinity won’t manage the casino once Cannery Casino Resorts LLC’s management contract expires next year. The company recently signed a four-year deal to provide consulting services to the Rampart Casino in Las Vegas, which is owned by Hotspur Casinos Nevada Inc. Affinity also operates riverboat casinos in Iowa and Missouri. Among Affinity’s 12 Nevada casinos are the three Primm resorts at the Nevada-California border and the off-Strip Terrible’s Casino. The “Terrible’s” name will remain at certain casinos under a licensing agreement. Affinity Gaming will continue to operate the casino properties under their familiar local names. The bankruptcy reorganization reduced the company’s long-term debt from about $1.1 billion to $350 million. Z Capital Partners acquired a 6.7 percent ownership stake this month in Affinity, which made the investor the third largest shareholder. Highland Capital Management owns 8.3 percent of the company. Jerry Herbst told gaming regulators the idea behind JETT Gaming was to reacquire the slot machine route operations at the convenience stores when the contracts with Affinity expire.Īfter emerging from bankruptcy, reconfigured Affinity Gaming is owned by a group of former lenders, including SPH Manager LLC with an 18.4 percent ownership stake. The company was a separate entity from Herbst Oil, but continues to oversee the slot machines at Terrible Herbst convenience stores in Nevada. Herbst Gaming had been operated by Ed, Tim and Troy Herbst, the sons of Jerry Herbst. The company will begin operations with three locations in Nevada. Nevada gaming regulators this month approved a new slot machine route business, JETT Gaming, a company controlled by Herbst Oil Co. Ross hinted earlier this year at a change in name because he expected the Herbst family to return to the gaming industry. “We believe it is in the interest of the employees and management to make a fresh start.”Īffinity Gaming LLC operates 15 casinos in three states, including 12 in Nevada, and a 6,000-slot machine Nevada route operation. “In order to reflect our new corporate identity, we have changed our corporate name to Affinity Gaming,” Chief Executive Officer David Ross said in a statement. New management and the new board of directors decided to drop the Herbst title in favor of a new name. They no longer have any involvement in the business. Members of the founding Herbst family lost control of the company’s casinos and slot machine route operation in December after a bankruptcy court-administered reorganization. Herbst Gaming is out and Affinity Gaming is in.
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