Affinity Gaming gains breathing room in shareholder fight

Affinity Gaming gained limited breathing space Monday in its on-going legal battle with largest shareholder Z Capital Partners.

At a hearing, Clark County District Judge Mark Denton put on hold for 15 days his preliminary injunction issued last week that stopped Affinity from setting its poison pill in motion if Z Capital buys any more stock. Affinity said it would file an appeal with the Nevada Supreme Court.

Z Capital now owns just over 30 percent of the company, but the poison pill would unleash a flood of new stock that would dilute its position to about 5 percent if the Chicago-based investment firm boosts its position.

However, Denton allowed Z Capital to continue to try to find votes to support the two candidates it has nominated for Affinity’s seven-member board. The vote is scheduled for Tuesday. The company said it already has about 62 percent of the votes in hand for its board slate.

Z Capital has said it would like to buy more stock but has not submitted a takeover bid for the entire company. According to Affinity attorneys, Z Capital was putting out buy offers as recently as Friday.

Affinity owns the two Terrible’s casinos in Las Vegas, the three in Primm, and several others scattered across the country.

Contact reporter Tim O’Reiley at
toreiley@reviewjournal.com or 702-387-5290.