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.
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SOURCE: Europa Cruises Corporation
CONTACT: John R. Duber, Director and Director of Investor Relations of Europa Cruises Corporation, 440-331-0194 |
