Related Parties

9 Months Ended

Sep. 30, 2011

Related Parties [Abstract]

Related Parties

6. Related Parties

InvestCo owns 99.99% of the Company which is a non-voting interest. The other .01% of the Company, which is the only voting interest of the Company, is owned by VoteCo. InvestCo is wholly owned by Newport. In May 2007, Newport contributed to the Company 100% of the New Shreveport Notes held by Newport since August 2006 and 11% of the SGH preferred shares held since August 2006 that comprised the Company's Eldorado Shreveport investments (the "Eldorado Shreveport Investments"). The Eldorado Shreveport Investments were transferred to the Company at fair market value at the date of transfer. VoteCo is responsible for the operations of the Company and is wholly owned by the managers of Newport. In July 2011, NGOF and NGCF contributed $7,222,222 and $1,000,000, respectively, to the Company for the purpose of purchasing a 40% equity interest in Mesquite. See note 7 below for further discussion regarding these contributions.

At September 30, 2011 and December 31, 2010, the Company was owed $5,179,772 from Newport, representing $5,118,172 of interest earned and received on the Eldorado Shreveport Investments and $61,600 of preferred dividend earned and received on the 11,000 SGH preferred shares. At September 30, 2011 and December 31, 2010, the Company owed $2,787,315 and $2,568,903, respectively, to Newport for expenses paid by Newport on the Company's behalf. There is no formal agreement outlining the settlement of the receivable and payable between Newport and the Company. Accordingly, the receivable and payable are reflected as a non-current asset and a non-current liability, respectively, at September 30, 2011 and December 31, 2010.