-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IMHmBu9h7+k8R1Io8NLu4PsAHKaCw4Rz28uFruiVx4GSyI/0BpFy8AKqtAtHiJXn K3jua7MlpjgERvEn8TFYbw== 0000916608-98-000008.txt : 19981119 0000916608-98-000008.hdr.sgml : 19981119 ACCESSION NUMBER: 0000916608-98-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TREASURE BAY GAMING & RESORTS INC CENTRAL INDEX KEY: 0000916608 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MEMBERSHIP SPORTS & RECREATION CLUBS [7997] IRS NUMBER: 640835173 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 033-73362 FILM NUMBER: 98754926 BUSINESS ADDRESS: STREET 1: 1980 BEACH BLVD CITY: BILOXI STATE: MS ZIP: 39531 BUSINESS PHONE: 2283856026 MAIL ADDRESS: STREET 1: 1983 BEACH BLVD CITY: BILOX STATE: MS ZIP: 39531 10-Q 1 QUARTERLY FILING COMPANY IS NOT A SEC REGISTRANT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1998. ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission File Number 22-27770 ------------------------------- TREASURE BAY GAMING & RESORTS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware 64-0835173 -------- ---------- (State of Incorporation) (IRS Employer Identification No.) 1983 Beach Blvd., Biloxi, Mississippi 39531 ------------------------------------- ----- (Address of principal executive office) (Zip Code) Indicate by check mark whether the registrant (a) has filed all reports required to be filed by Section 13 of 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (b) has been subject to such filing requirements for the past 90 days. Yes _____ No____ This company is not an SEC registrant As of September 30, 1998, there were 10,000,000 shares of Common Stock, $0.01 par value per share, outstanding. TREASURE BAY GAMING RESORTS, INC. INDEX PART I. FINANCIAL STATEMENTS ITEM 1. FINANCIAL STATEMENTS Consolidated Statements of Earnings for the three months and the nine months ended September 30, 1998 and September 30, 1997 Consolidated Balance Sheets as of September 30, 1998 and December 31, 1997 Consolidated Statements of Stockholders' Equity for year ended December 31, 1997 and the nine months ended September 30, 1998 Consolidated Statements of Cash Flows for the nine months ended September 30, 1998 and September 30, 1997 and December 31, 1997 Notes to Consolidated Financial Statements ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS PART II. OTHER INFORMATION ITEM 1. Legal Proceedings ITEM 6. Exhibits and Reports On Form 8-K
TREASURE BAY GAMING AND RESORTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS Unaudited Audited September 30, 1998 December 31, 1997 --------------------- ----------------- CURRENT ASSETS Cash and cash equivalents $5,656 $5,832 Restricted Cash 56 55 Accounts receivable, net of allowance for doubtful accounts 1,334 1,048 Inventories 409 271 Prepaid expenses 943 590 --------------------- ------------------ Total current assets 8,398 7,796 --------------------- ------------------ PROPERTY AND EQUIPMENT, net 46,003 46,777 --------------------- ------------------ OTHER ASSETS 687 415 --------------------- ------------------ Total Assets $55,088 $54,988 ===================== ================== LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $991 $1,346 Accrued Salaries and benefits 2,276 1,490 Accrued Jackpots 1,174 999 Accrued taxes payable 1,471 1,707 Other accrued expenses 646 2,473 Accrued Interest 670 664 Current Portion LTD 2,054 1,374 --------------------- ------------------ Total Current Liabilities 9,282 10,053 --------------------- ------------------ LONG-TERM DEBT 39,077 38,024 Total liabilities 48,359 48,077 --------------------- ------------------ STOCKHOLDERS' EQUITY Common stock, $.01 par value, 20,000,000 shares authorized, 10,000,000 shares issued and outstanding 100 100 Additional paid in capital 47,382 47,382 Accumulated deficit (40,754) (40,571) --------------------- ------------------ Total stockholders' equity $6,728 $6,911 --------------------- ------------------ Total liabilities and stockholders' equity $55,087 $54,988 ===================== ==================
TREASURE BAY GAMING & RESORTS, INC & SUBSIDARIES CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) (IN THOUSANDS, EXCEPT EARNINGS PER SHARE) Three Mths Ended Nine Months Ended ------------------------------------------- --------------------------------------------- September 30, 1998 September 30, 1997 September 30, 1998 September 30, 1997 REVENUES: Casino 16,920 16,178 45,806 45,233 Rooms 1,035 1,076 2,835 2,806 Food and beverages 3,173 2,680 8,497 8,056 Other 225 194 699 537 ------------------ ------------------- ------------------- ---------------------- Gross Revenues 21,353 20,128 57,837 56,632 Less: Promotional allowances (2,633) (2,246) (6,818) (6,580) ------------------- ------------------- ------------------- ---------------------- NET REVENUES 18,720 17,882 51,019 50,052 ------------------- ------------------- ------------------- ---------------------- COSTS AND EXPENSES: Casino 7,942 7,806 22,664 22,576 Rooms 571 390 1,509 1,641 Food and beverages 2,869 2,325 7,608 6,831 General and administrative 2,585 3,483 8,306 9,538 Utilities 402 373 1,048 986 Depreciation and amortization 1,004 1,419 2,930 3,129 Lease expense 661 774 2,007 2,271 Other 196 188 532 527 ------------------- ------------------- ------------------- ---------------------- Total Expenses 16,230 16,758 46,604 47,499 ------------------- ------------------- ------------------- ---------------------- Income/Loss from operations 2,490 1,124 4,415 2,553 ------------------- ------------------- ------------------- ---------------------- Other income/expense: Gain/loss sale off assets (18) (2) 72 4 Restructuring/Corporate Expenses (430) (2,456) (1,127) (3,158) Interest expense, (1,187) (659) (3,578) (738) Other income, principally interest 6 982 35 368 ------------------ ------------------- ------------------- ---------------------- Total other income (expense) (1,629) (2,135) (4,598) (3,524) Income/(loss) before provision for income taxes and Extraordinary Items: 861 (1,011) (183) (971) Provision for Income Tax 0 0 0 0 Income/(loss) Before Extraordinary Item-Gain on Forgiveness of Debt 861 (1,011) (183) (971) Extraordinary Item-Gain of Forgiveness Of Debt 0 107,992 0 107,992 Net Income/(loss) $861 $106,981 ($183) $107,021 =================== =================== =================== ====================== Average common shares outstanding 10,000 33 10,000 33 Income (loss) per common share $0.09 $3,241.85 ($0.02) $3,243.06 These statements do not include any adjustments for casualty loss or insurance proceeds
TREASURE BAY GAMING & RESORTS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 1997 (AUDITED), and THE NINE MONTHS ENDED SEPTEMBER 30, 1998 (UNAUDITED Additional Common Stock Paid-In Accumulated -------------------- Shares Amount Capital Deficit Total -------------- --------------- ----------- BALANCE, December 31, 1997 10,000,000 100,000 47,382,000 (40,571,000) 6,911,000 NET LOSS FOR THE NINE MONTHS ENDED September 30, 1998 0 0 0 (182,607) (182,607) ------------- ---------- -------------- --------------- ----------- BALANCE, September 30, 1998 10,000,000 $100,000 $47,382,000 ($40,753,607) $6,728,393 ------------- ---------- -------------- --------------- -----------
TREASURE BAY GAMING & RESORTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Nine Month Period Ended September 30, 1998 and the Year Ended December 31, 1997 (Unaudited) Nine Months Ended (Audited) September 30, December 31, 1998 1997 ------------------- -------------------- Cash Flows from Operating Activities: Net income (loss) (183) 106,119 Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,929 3,498 Accretion of discount on first mortgage notes payable 127 62 Increase in receivables (286) (462) Increase in inventories (138) (76) Increase in prepaid expense (353) (36) (Increase) Decrease in other Assets (272) 288 (Decrease) in liabilities subj. to compromise 0 3,130 (Decrease) in liabilities not subj. to compromise (1,230) (1,653) Gain on forgiveness of debt 0 (107,992) Net (gain) loss on disposal of assets (72) (50) ------------------- -------------------- Total adjustments 522 2,828 Cash Flows from Investing Activities: Purchases of property and equipment (2,333) (5,555) Proceeds from sale of assets, net of transaction costs 250 124 ------------------- -------------------- Net cash used in investing activities (2,083) (5,431) Cash Flows from Financing Activities: Proceeds from issuance of notes payable 2,500 2,250 Repayments of notes payable (1,114) (12,444) Proceeds from sale of capital stock 0 3,308 ------------------- -------------------- Net cash provided by financing activities 1,386 (6,886) Net increase in cash and cash equivalents (175) (9,489) Cash and Cash equivalents, at beginning of period 5,887 15,376 =================== ==================== Cash and cash equivalents, at end of period 5,712 5,887 =================== ==================== The accompanying notes are an integral part of these consolidated condensed financial statements.
TREASURE BAY CASINO & RESORTS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NOTE 1. ORGANIZATIONAL STRUCTURE AND BASIS OF PRESENTATION: The accompanying unaudited consolidated financial statements include the accounts of Treasure Bay Gaming & Resorts, Inc., a Delaware corporation incorporated in August 1993, and its wholly-owned subsidiaries, Treasure Bay Corp. (TBC, a Mississippi corporation incorporated in February 1993. and Shoreline Development Inc.) The Company was organized to develop, own and operate casinos in the State of Mississippi and other emerging gaming jurisdictions. The Company currently owns and operates a casino in Biloxi, Mississippi. The accompanying interim unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10Q and Article 10 of Regulation S-X. They should be read in conjunction with the audited Shareholders report for the years ended December 31, 1997, 1996, and 1995. Therefore, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. Management believes that all adjustments, necessary for a fair presentation have been included. Operating results for the nine-months ended September 30, 1998 are not necessarily indicative of the results that can be expected for the fiscal year ended December 31, 1998. August 8, 1997, Treasure Bay Gaming & Resorts, Inc. (the "Company") received confirmation of it reorganization plan that was filed February 6, 1997. The company had been operating as a debtor-in-possession since November 18, 1994. Under Chapter 11, certain claims against the Company in existence prior to the filing of the petitions for relief under the Federal bankruptcy laws are stayed while the Company continues business operations as debtor-in-possession. These claims are reflected in the June 30, 1997 and June 30, 1996 balance sheets as "liabilities subject to compromise." The approved plan provided that all outstanding Securities would be canceled, annulled and extinguished. New Notes and Common Stock shall be issued. Except as provided in the Confirmation Order the plan discharged the Company from all claims or debts that arose before the bankruptcy date. The new equity investor's contribution would be $9,000,000 of new value in the form of cash and real estate. This would give the new investors ninety (90%) of the Company's new stock. First Mortgage Trust surrendered all of the old notes and were issued new notes in the amount of $27,250,000 and ten (10%) of the issued common stock. An additional Note for $2,250,000.00 for working capital was issued, for a total of $29,250,000. Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments Cash Equivalents, Receivable and Accounts Payable - The carrying amount approximates fair value because of the short maturity of these instruments. Income Taxes The Company has filed consolidated Federal and Mississippi tax returns for the period from inception through December 31, 1993, and for the years ended December 31, 1994, 1995, 1996 and 1997. The Company has adopted the provisions of Statement of Financial Accounting Standards (FAS) No. 109, "Accounting for Income Taxes", which requires, among other things, that deferred tax assets and liabilities be recorded using the liability method, and that deferred tax assets be recognized, subject to appropriate reserves for realization. The Company expects to have a net operating loss carry-forward for income tax purposes totaling approximately $90 million which will begin expiring in 2008. No net tax benefit for the losses has been recorded. The deferred tax asset resulting from differences in the timing of the deduction of asset valuation provisions and the capitalization and amortization of preopening expenses for income tax purposes account for substantially all of the differences between book and taxable income. Earnings Per Share In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings per Share." This replaced the calculation of primary and fully diluted earnings per share with basic and diluted earnings per share. Basic earnings per share excludes any diluted effects of options, warrants and convertible securities. The Company does not currently have any warrants, options or convertible securities all such items were nullified and void as part of the restructuring plan. Litigation and Contingencies The Company adheres to FAS No. 5, "Accounting for Contingencies," concerning the recording of liabilities for pending litigation. Casino Revenues and Complimentaries In accordance with prevailing industry practice, the Company recognizes as casino revenues the net win from gaming activities, which is the difference between gaming wins and losses. Revenues include the retail value of rooms, food, beverage, and other goods and services provided to customers without charge. Such amounts are then deducted as promotional allowances. Restructuring/Corporate Expenses Restructuring expenses primarily include legal and professional services rendered in connection with restructuring activities. The estimated amounts of fees incurred that have not yet been paid have been approved. Accounting Standard The Financial Accounting Standards Board has issued FAS No. 121, "Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of", effective for fiscal years beginning after December 15, 1995. Generally, FAS No. 121 requires that long-lived assets that are expected to be held and used in operations be reported at the lower of cost or fair value. Long-lived assets to be disposed of are to be reported at the lower of carrying amount or fair value less cost to sell. The Company has employed the methodology prescribed by this standard in evaluating the carrying amounts of its long-lived assets. Risk Factors Certain risk factors have been identified by the Company that may impact its ability to achieve ongoing successful operations. Such factors include the following: Competition - Competition on the Gulf Coast is expected to increase as new and current casino operators expand their facilities. Imperial Palace, Biloxi's first Las Vegas Casino opened in December 1997. Beau Rivage is expected to open in spring 1999. Other nearby states are considering gaming legislation. Passage of gaming in any of the surrounding states could have a negative effect on the Company's revenues. Licensing Risk - The Company is required, in order to operate its casino, to maintain certain gaming licenses from the State of Mississippi. In addition, directors and certain stockholders, officers and other key employees are required to maintain their suitability to own and operate a casino, and in certain cases will be required to maintain their gaming licenses. The failure of the Company or certain of the above referenced individuals to retain the necessary licenses or finding of unsuitability would have a material adverse impact on the Company. The current casino operator's license is valid through April 2000. Proposed Gaming Referendum- Anti-gaming interests have proposed a statewide referendum intended to abolish legalized gaming in the state of Mississippi. A modified version of that referendum is anticipated to be placed on a statewide ballot in the year 2000. Passage of this referendum would have a negative impact on the Company. Severe Weather - A hurricane, flood or other severe weather could cause significant physical damage to the Company's casino and on-shore facilities, which could result in service interruption and reduction in the number of potential customers traveling to the Company's casino market, which could have a material adverse impact on the Company's operating results. On September 25, 1998, the Company suspended operations due to Hurricane Georges. The Casino remained closed until October 10, 1998. PROPERTY AND EQUIPMENT: Property and equipment consists of the following as of: September 30, December 31, 1998 1997 __________ _____________ Land $ 18,244 $ 18,244 Casino barge, buildings and impr. 38,747 37,754 Leasehold acquisition costs 19,548 19,548 Furniture, fixtures and equipment 21,196 21,669 ________ _____________ 97,735 97,215 Less: Accumulated depreciation and amortization (16,687) (15,438) Valuation reserve (35,000) (35,000) _________ _____________ Total property and equipment, net $ 46,048 $ 46,777 In accordance with FAS No. 121 (see Note 3), the Company established reserves during 1994 to reduce the value of its casino facilities to the current estimated fair value. The Treasure Bay Biloxi casino was written down to the lower of cost or market value. This resulted in a $35,000,000 charge to income for Treasure Bay Biloxi for the year ended December 31, 1994. LONG-TERM DEBT: Long-term debt, including capital lease obligations consists of First Mortgage Notes and other notes payable secured by furniture and fixtures. The First Mortgage Notes are balloon notes payable in full on August 1, 2006. The Indenture requires quarterly interest due at 12%, but has imputed interest at 13.5%. The vessel, hotel, and other furniture, fixtures, and equipment secure the Notes. The Indenture requires compliance with many debt covenants, including among other restrictions, the Company must retain a consolidated net worth of at least $3,000,000, and numerous restrictions on borrowings. The Company is currently in compliance with all convenants. Other Long-Term Debt Estimated amount of settlement agreement for pre-petition and gap obligation due to a vendor for progressive jackpot payments and software services. The agreement provides for additional progressive payments of 1.5% on progressive machines for a total of thirty months. The Company has accrued deferred rent to normalize the annual lease payments over the initial term of the lease plus the first two renewal periods. LIABILITIES SUBJECT TO COMPROMISE: As described in Note 1, the Company had been operating as debtor-in-possession under the U. S. Bankruptcy Code since November 18, 1994. As a result of the bankruptcy proceedings, the Company was in default on substantially all of its debt agreements as of December 31, 1996, 1995 and 1994. In accordance with the provisions of the U. S. Bankruptcy Code, payment on the Company's prepetition debt has been suspended and reclassified as "Liabilities Subject to Compromise." The plan of reorganization settled all of the above liabilities. To date all obligations have been paid, canceled, transferred to new notes, or remain in the accrued liability section of the balance sheet. OPERATING LEASES: The Company conducts certain operations on leased property and leases certain equipment and machinery. The Company's operating leases, including the Company's property leases, are executor contracts. PLAN OF REORGANIZATION: On May 10, 1995, the Company filed a Plan of Reorganization (the "Reorganization Plan") for consideration by creditors. Subsequently, the Company filed a First and a Second Amended Plan of Reorganization on July 28, 1995, and November 13, 1995, respectively. The original plan was denied confirmation by the bankruptcy court in October 1996. Subsequent to denying the plan the Judge recused himself from the case and the case was transferred to a different Judge. On February 6,1997, the Company filed the Amended Disclosure statement for the "Amended Joint Plan of Reorganization of Treasure Bay and First Trust National Association as Indenture Trustee." This plan represented an agreement between Treasure Bay, the First Mortgage Noteholders, and the Unsecured Creditors Committee of Treasure Bay. The plan anticipated a $9,000,000 equity infusion of cash and property in return for 90% of the new common stock in the reorganized company with the Noteholders obtaining the remaining 10% equity. The reorganization plan was confirmed on August 8, 1997. In accordance with the reorganization plan, all accounting entries have been made. TREASURE BAY CASINO & RESORTS, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with and is qualified in its entirety by, the unaudited Consolidated Financial Statements and the Notes thereto included elsewhere in this report. General Overview The Company develops, constructs and manages land-based and dockside casinos and related amenities. The Company is currently operating as a single site facility in Biloxi, Mississippi. In May 1998, the company applied for a gaming license in St. Croix, U.S. Virgin Islands. To date the application is still pending, the next hearing is scheduled for November 23, 1998. The Company has a limited operating history that may not be indicative of the Company's future performance. Additionally, comparison of results from year to year may not be meaningful due to changes in the local gaming markets and the sale of the Tunica facility in 1995. Treasure Bay contemplates expanding its existing operation and establishing additional gaming operations. In July 1998, a proposed referendum that would abolish legalized gaming in the State of Mississippi. The referendum will need 98,000 signatures to be place on the ballot. At this time a resolution cannot be predicted with certainty. If the initiative were passed it would force the casino to close within a two-year period. This would have a material adverse effect on the Company. RESULTS OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 1997 Earning Per Common Share and Net Earnings: Net earnings decreased by $3.5 million to a loss of $1.0 million for the nine months ended September 30, 1998 compared to the same period in the prior year. The downturn was due to interest expense of $2.4 million in 1998 and Cancellation of Debt of $2.0 million in 1997. Revenues: The Company generated $45.8 million in casino revenue and $12.0 million in gross hotel, food, beverage, retail and other revenue during the nine months ended September 30, 1998. During the nine months ended September 30, 1997, the Company generated $ 45.0 million in casino revenue and $ 11.0 million in gross hotel, food, beverage, retail and other revenue Costs and Expenses: Total costs and expenses decreased by $ 0.7 million. The decrease is primarily due to a decrease in the hotel-related expenses. Other : Interest expense increased by $2.8 million to $3.6 million for the nine months ended September 30, 1998. This increase is due the confirmation of the reorganization plan which had ceased interest expense on all pre-petition liabilities and the notes to the bondholders. In September 1997, the company recognized a Gain on Forgiveness of Debt for $107 million as a result of the restructuring. Capital resources, capital spending, and liquidity: As of September 30, 1998, the Company had $5.6 million in non-restricted cash and cash equivalents. As of September 30, 1998, the Company's long-term debt included First Mortgage Notes are balloon notes payable in full on August 1, 2006. The Indenture requires quarterly interest due at 12%, but has imputed interest at 13.5%. The vessel, hotel, and other furniture, fixtures, and equipment secure the Notes. The Indenture requires compliance with many debt covenants, including among other restrictions, the Company must retain a consolidated net worth of at least $3,000,000, and numerous restrictions on borrowings. The Company is currently in compliance with all convents. The Company expects that available cash and cash from future operations will be adequate to fund debt service and working capital. However, no assurance can be made that the Company will have the capital to make some of the capital improvements that may be necessary to remain competitive in the local market. Hurricane Georges: On September 25, 1998, the Mississippi Gaming Commission required all Coast casinos to close gaming operations to prepare for Hurricane Georges. The hurricane did caused water and wind damage to the casino and hotel. The Company maintains property, liability, and business interruption insurance to help offset the costs of hurricane damages. The Company has not recorded any insurance proceeds or damage estimates. TREASURE BAY CASINO & RESORTS, INC. AND SUBSIDIARIES PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Litigation As a result of the bankruptcy filing, all legal proceedings with respect to prepetition claims against the Company was automatically stayed pursuant to Section 362 of the U. S. Bankruptcy Code. ITEM 2 - CHANGES INS SECURITIES - None ITEM 3. - DEFAULTS UPON SENIOR SECURITIES - None ITEM 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS- None ITEM 5. - OTHER INFORMATION - None ITEM 6- EXHIBITS AND REPORTS ON FORM 8-K (a) No reports on Form 8-k were filed during the quarter ended September 30, 1998. ts on Form 8-k were filed during the quarter ended September 30, 1998. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TREASURE BAY GAMING & RESORTS, INC. By /S/ LEE ANN HUNTER ------------------------- LEE ANN HUNTER Director of Finance Dated: September 16, 1998 EX-27 2 FDS --
5 9-MOS Dec-31-1998 Sep-30-1998 5,712 0 1,334 0 409 8,398 63,656 17,654 55,088 9,282 27,250 0 0 100 6,628 55,087 0 51,019 0 46,604 4,598 0 3,578 (183) 0 0 0 0 0 (183) (.02) (.02)
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