Lawsuits filed in collapse of casinos deal
By JEFF AMY The Associated Press February 6, 2013 7:52PM
JACKSON, Miss. — An Oklahoma Indian tribe and the bankrupt owner of two DiamondJacks casinos are suing each other over the collapse of the tribe’s plan to buy the gambling halls.
Global Gaming Solutions, a unit of the Chickasaw Nation of Oklahoma, wants a federal bankruptcy judge to declare it didn’t break its agreement to buy gambling halls in Bossier City, La., and Vicksburg, Miss., from Legends Gaming. Global says Legends’ lack of investment in the casinos led to a business decline, breaking the deal, and Global should get back its $6.25 million deposit.
William McEnery, the former owner of the Gas City chain and a Homer Glen resident, is Legends’ chairman, chief executive officer and majority shareholder.
Legends says Global’s failure to complete the $125 million purchase was an “egregious and intentional” contract breach. Legends wants to keep the $6.25 million and seeks further damages.
Legends filed for bankruptcy last July, citing $298 million in debts. At the time of the filing it also announced the sale of the two casinos to Global Gaming.
Legends’ plan for emerging from bankruptcy hinged on selling substantially all of its assets to Global Gaming. In a Jan. 30 bankruptcy court filing in Louisiana, Legends said it was withdrawing its pending plan for exiting bankruptcy, alleging Global Gaming had breached terms of the sale agreement.
McEnery was one of the original investors in the former Empress Casino riverboats in Joliet and Hammond, Ind.
McEnery’s Gas City locations were sold in 2011 following a separate bankruptcy case, and his personal bankruptcy case is continuing in federal court in Chicago.
Contributing: Mike Nolan