Z Capital in its letter said that constituted a of interest

Z Capital angles for control of casino operator Affinity

official canada goose outlet Feb 5 (Reuters) Distressed investor Z Capital Partners has upped its ownership stake in Affinity Gaming Corp, the latest twist in a brewing dispute over control of the formerly bankrupt casino operator. Securities Exchange Commission on Monday night and Tuesday afternoon, Z Capital said it raised its stake in www.picframer.ca Affinity to 30.5 percent from 24.97 percent. The investor has been steadily raising its stake since first earning an equity share through the company bankruptcy. official canada goose outlet

canada goose outlet online canada goose factory sale Affinity, previously called Herbst Gaming Inc, declared bankruptcy in Nevada in 2009, with a plan to split off its slot machine company and give creditors the equity in a new casino operator that became Affinity. Large investors Canada Goose Jackets like Z Capital and Silver Point Capital have been buying up shares in Affinity ever since. canada goose outlet online

canada goose outlet reviews Canada Goose sale Silver Point, the second largest shareholder, owned 24.9 percent of Affinity as of December, according to SEC filings. canada goose outlet reviews

canada goose black canadian goose jacket friday sale Affinity owns hotels and casinos in Nevada, including Primm Valley Casino Resorts and Terrible Hotel Casino, as well as resorts in Colorado and Missouri. canada goose black friday sale

canada goose outlet canada Z Capital has made no secret of its aim to own a substantial chunk of Affinity, saying in SEC filings last year that it may ultimately acquire a controlling stake. canada goose outlet canada

And, in an Oct. 19 letter Canada Goose Coats On Sale to Affinity board it Canada Goose online said it would representation on the company board to permit us to fulfill our fiduciary duty to our own investors. It also heaped praise on Chief Executive David Ross and his team, saying the management team is an outstanding one that should be fully supported.

canada goose outlet parka Affinity has not commented publicly on Z Capital aspirations or its efforts to earn board membership, and the company declined to comment for this story. canada goose outlet parka

canada goose factory outlet But on Dec. 20 Affinity board updated bylaws in ways that canada goose store appear canada goose coats on sale to reduce shareholder influence over its operations. canada goose factory outlet

canada goose outlet canada goose uk shop uk Under the new rules, submitted to the Nevada Secretary of State, directors have discretion to determine suitability of shareholders, and appointing new directors now requires a majority, rather than plurality, of stockholder approval. canada goose outlet uk

canada goose outlet new york city The board can also adopt shareholder rights agreements that would allow it to issue new securities without shareholder votes, essentially giving it the power to create poison pills. canada goose outlet new york city

canada goose outlet shop Ross did canada goose uk outlet not return a call seeking comment. Z uk canada goose outlet Capital declined to comment for this story. canada goose outlet shop

goose outlet canada In its filing on Tuesday, Z Capital hinted that it could sue the board over the governance changes, saying it reserved the legal right to challenge the rights agreement. goose outlet canada

canada goose outlet online uk Bernard Black, a governance expert and professor at Northwestern University School of Law, said the board may be willing to risk getting sued for the chance to keep control of Affinity operations. canada goose outlet online uk

canada goose outlet store members might have adopted the idea of them sue us, Canada Cheap canada goose Goose Online Black told Reuters. might think it not a great way to think, but they wouldn be the first canada goose black friday sale board to canada goose clearance sale do that. canada goose outlet store

The new provisions strip language giving shareholders the right to vote Canada Goose Outlet on mergers or sales, and make it more difficult cheap Canada Goose for them to inspect the company books and records.

canada goose outlet sale Z Capital has also objected to Affinity use of its chairman, Don Kornstein, a former Bear Stearns investment banker, to represent the company in asset sales since Affinity has come out of bankruptcy, namely a 2012 asset swap with Golden Gaming Inc. Z Capital in its letter said that constituted a of interest. canada goose outlet sale

canada goose outlet toronto factory Asset sales have been a key component of Affinity restructuring. On Friday, it closed a deal to sell three Nevada casinos to Truckee Gaming LLC in a $17.4 million deal. According to SEC filings, it hired Jefferies Co Inc to solicit bids in that deal. canada goose outlet toronto factory

canada goose outlet nyc Lucian Bebchuk, who directs Harvard Law corporate governance program, said the new provisions sound like departures from good governance. canada goose outlet nyc

canada goose jacket outlet Canada Goose Parka troubling are the provisions denying shareholders any right to vote on fundamental changes such as a merger, Bebchuk told Reuters on Monday. canada goose uk canada goose jacket outlet

The company directors are also free under the new rules to pursue business opportunities that compete with Affinity, and are safe from liability for canada goose coats breach of fiduciary duty for failing canada goose clearance to tell the company about such opportunities.