Z Capital Partners acquires stake in Herbst Gaming LLC
Z Capital Partners LLC, an investor in distressed and turnaround companies, has acquired a minority stake in gaming company Herbst Gaming LLC, according to a regulatory filing.
Based in Lake Forest, Ill., Z Capital Partners purchased a 6.7 percent stake, or 1,349 million shares, in the Las Vegas-based gaming company.
Terms of the deal were not disclosed. According to Herbst’s 2010 annual report, there were just over 20 million “common units” outstanding as of March 28.
“Our outstanding common units are privately held and there is no established public trading market,” the gaming company’s report said. There are 95 holders of Herbst’s common shares, but there are no plans for a public offering, according to the annual report.
Z Capital Partners also owns shares in three other resort-casinos, including Casa Blanca and Virgin River, both located in Mesquite.
A spokesman for the privately held investment group declined Wednesday to discuss the firm’s business relationships in Nevada. Herbst CEO David Ross was unavailable for comment.
Herbst, which operates nearly a dozen casinos in Nevada, emerged from bankruptcy protection on Dec. 31, owned by a group of former lenders, including SPH Manager LLC with an 18.4 percent ownership stake. Highland Capital Management owns 8.3 percent and Z Capital Partners ranks third with its 6.7 percent interest.
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.