KRUZ newz
(PR NEWSWIRE) Europa Cruises Corporation Announces Sale of M/V Europa Sun
Europa Cruises Corporation Announces Sale of M/V Europa Sun
MADEIRA BEACH, Fla., Jan. 10 /PRNewswire/ -- Europa Cruises Corporation
(OTC Bulletin Board: KRUZ) announced today that on December 30, 1999, it
entered into an Agreement for the Purchase and Sale of a Vessel and Business
Assets for a total purchase price of Four Million, Six Hundred and Fifty
Thousand Dollars ($4,650,000). The Company agreed to sell the M/V Europa Sun,
certain equipment, and any transferable lease rights it had to its Miami
Beach, Florida port to Stardancer Casino, Inc. The purchase price includes
the payment by the Purchaser over time of approximately $1,800,000 to
Debis Financial Services, Inc., which holds a first mortgage on the
Europa Sun. The payment to Debis will be secured with a $1,800,000 Letter of
Credit. The remaining $2,850,000 is payable in three installments over the
next sixty days of approximately $950,000 each. The Company is in receipt of
a nonrefundable $950,000 deposit. The Company will retain title to the Vessel
as security until the fall purchase price in the amount of $4,650,000 has been
paid. The Company intends to use the proceeds of the sale to pay down a
significant portion of the Company's debt.
Deborah A. Vitale, President of Europa Cruises Corporation, commenting on
the sale stated: "The proceeds of this sale, coupled with the recent sale of
the Stardancer in December, will place the Company on more firm financial
footing and should allay any concerns as to the financial demise of the
Company. The two sales are important steps in realizing our goal of becoming
an essentially debt-free, asset rich entity and represent a strong strategic
move for the Company. The direction of the Company is shifting to Mississippi
where our greatest prospects for maximizing shareholder value rest."
Europa Cruises Corporation owns, operates and/or leases gambling ships.
Until the sale of the Sun, the Company owned three vessels, including the Sun,
which it chartered to Stardancer Casino, Inc. The Company now owns two
vessels. The Company operates one of its vessels, the M/V Europa Sky, out of
Madeira Beach, Florida. The Company offers day and evening gambling cruises
which include Las Vegas style gaming, including blackjack, slot machines,
craps, and roulette in addition to dining, dancing and entertainment.
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., also intends to
develop a destination casino resort and hotel.
The business of the Company is subject to risks and uncertainties. The
development of the Diamondhead, Mississippi project is also subject to risks
and uncertainties which include those relating to permitting, financing, the
activities of environmental groups, the outcome of litigation and the actions
of federal, state, or local governments and agencies. |
