Southwest Casino sells Running Aces interest

Southwest Casino Corporation representatives announced Thursday they have completed a transfer of its ownership interest in North Metro Harness Initiative LLC to Black Diamond Commercial Finance LLC that is intended to improve the long-term viability and preserve hundreds of jobs at Running Aces Harness Park, the popular, state-of-the art card room and harness racing track in Columbus, Minn.

"We remain committed to the success of Running Aces and its continuing to contribute to the City of Columbus, Anoka County and the State of Minnesota in the form of jobs, taxes and economic activity," Southwest CEO James Druck said.

On Oct. 19, Southwest Casino Corporation and its wholly owned subsidiary, Southwest Casino and Hotel Corp., transferred its 50-percent membership interest in North Metro Harness Initiative LLC to Black Diamond. In exchange, Southwest receives:

Ø The option to repurchase its 50-percent membership interest in Running Aces.

Ø The retention of Southwest’s right to receive preferential distributions for previous cash advances and loans made by Southwest to North Metro.

Ø Relief from a limited guaranty by Southwest of a portion of North Metro’s debt.

Druck said he is encouraged by the financial capabilities of the new ownership group. He said the marketing dollars and working capital that Southwest understands Black Diamond intends to provide are "essential to the track’s future."

Southwest, meanwhile, will provide consulting services to Black Diamond for four months. "We look forward to working with Black Diamond to insure improved operating results and, ultimately, the ability to repurchase our 50 percent equity interest in the track," Druck said. (Southwest Casino Corp.)

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