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Europa Cruises Corporation Announces the Sale Of the M/V Europa Sky and the M/V Europa Star
MADEIRA BEACH, Fla., Aug. 7 /PRNewswire/ -- Europa Cruises Corporation (OTC Bulletin Board: KRUZ - news) announced today that its wholly owned subsidiary, EuropaSky Corporation, had entered into an agreement for the purchase and sale of a vessel and certain assets for a total purchase price of five million, two hundred thousand dollars ($5,200,000). The Company agreed to sublease its Madeira Beach, Florida port and to sell the M/V Europa Sky and certain equipment and assets to Stardancer Casino, Inc., a South Carolina corporation. The purchaser is the same entity that previously purchased two other vessels from the Company. The Company is in receipt of a non-refundable down payment in the amount of $800,000. The remaining $4,400,000 is payable in monthly installments and will be secured with a letter of credit. The agreement calls for the full purchase price to be paid on or before May 1, 2001. The payment terms vary depending on whether the purchaser also purchases a second vessel, the M/V Europa Star. The Company will retain title to the vessel as security until the full purchase price has been paid. The transfer of operations in Madeira Beach, Florida, is expected to occur on or before August 30th.
Europa Cruises Corporation also announced today that its wholly owned subsidiary, Europa Cruises of Florida 1, Inc., had entered into another, separate agreement to sell the M/V Europa Star to Stardancer Casino, Inc., for a total purchase price of two million, one hundred thousand dollars ($2,100,000). The purchaser has the right to terminate this agreement on or before September 1, 2000, if and only if the total estimated cost of drydocking the vessel following an out-of-water inspection of the hull of the ship, exceeds $750,000. A down payment in the amount of $300,000 will be forwarded to the Company on August 8, 2000. The remaining $1,800,000 is payable in monthly installments and will be secured with a letter of credit. The agreement calls for the full purchase price to be paid on or before March 1, 2001. The Company will retain title to the vessel as security until the full purchase price has been paid. In the event the purchaser exercises its option to terminate this agreement, any amounts paid towards the purchase price of the Europa Star, or towards the drydocking of the Europa Star, will be applied to the final payment due towards the purchase price of the Europa Sky.
The Company intends to use the proceeds of the sales to repay most of the Company's debt, including approximately $2,500,000 due First Union National Bank of Florida, and $900,000 due to the Florida Department of Revenue pursuant to a settlement agreement reached in 1999.
Deborah A. Vitale, President of Europa Cruises Corporation, commenting on the sale stated: ``These sales allow the Company to meet the demands placed on the Company by its lender. In addition, once the transfer of operations in Madeira is complete, management will be in a position to focus its full-time, attention and resources on the development of the Company's Diamondhead, Mississippi project. With these sales, the direction of the Company completely shifts to Mississippi where our greatest prospects for maximizing shareholder value rest.''
The Company, through its wholly owned subsidiary, Casino World, Inc., intends to build a destination casino resort and hotel at its 404-acre site on the Bay of St. Louis, in Diamondhead, Mississippi. The site, which is located immediately off Interstate 10, is adjacent to a site on which Mandalay Resort Group, previously known as Circus Circus Enterprises, Inc., is also expected to develop a destination casino resort and hotel. |
