Investment (Mesquite [Member])

12 Months Ended

Dec. 31, 2011

Mesquite [Member]

5. Investment in Mesquite

Mesquite is engaged in the hotel casino industry in Mesquite, Nevada through its wholly-owned subsidiaries C & HRV, LLC (doing business as Virgin River Hotel/Casino/Bingo) and VRCC, LLC and its wholly-owned subsidiaries 5.47 RBI, LLC and RBG, LLC (doing business as CasaBlanca Resort/Golf/Spa) and its wholly-owned subsidiary CasaBlanca Resorts, LLC (doing business as Oasis Resort and Casino which is currently closed) and its wholly-owned subsidiaries Oasis Interval Ownership, LLC, Oasis Interval Management, LLC and Oasis Recreational Properties, Inc.

On August 1, 2011, the Company acquired the 40% Mesquite Interest in exchange for $8,222,222 in cash that was contributed to the Company by the Newport Funds in July 2011. The acquisition was completed upon the transfer to Mesquite of all of the assets of Black Gaming, LLC ("Black Gaming"), including Black Gaming's direct and indirect ownership interests in its subsidiaries. The transfer of the Black Gaming assets to Mesquite and the acquisition by AcquisitionCo of the Mesquite Interest were pursuant to a joint plan of reorganization (the "Plan") filed by Black Gaming and its subsidiaries with the United States Bankruptcy Court for the District of Nevada (the "Court") on March 1, 2010, and approved by the Court on June 28, 2010.

The change in the Company's initial investment in Mesquite of $8,222,222 subsequent to August 1, 2011, consists solely of the Company's equity in the net loss of Mesquite for the five months ended December 31, 2011 ($2,620,400).

The following tables present condensed financial information of Mesquite as of December 31, 2011 and 2010, and for the years then ended (in thousands):


	2011		2010
	(Successor)		(Predecessor)
Balance Sheets
Current assets	$	13,556	$	13,737
Property and equipment, net		63,809		83,461
Other assets, net		12,098		8,888

Total assets	$	89,463	$	106,086

Current liabilities	$	13,050	$	25,941
Gaming equipment financing, less current portion		213		—
Liabilities subject to compromise		—		218,613
Long term debt, less current portion		64,500		—
Members' equity (deficit)		11,700		(138,468	)

Total liabilities and members equity (deficit)	$	89,463	$	106,086


	Successor			Predecessor
	Five Months Ended Dec. 31, 2011			One Day Ended Aug. 1, 2011		Seven Months Ended July 31, 2011			Twelve Months Ended Dec. 31, 2010
Statements of Operations
Net revenues	$	37,431		$	—	$	60,785		$	98,414
Operating expenses		(41,493	)		—		(57,749	)	$	(99,400	)

Operating income (loss)		(4,062	)		—		3,036			(986	)
Other income (expense)		(2,488	)		91,255		(1,598	)		(8,587	)

Net income (loss)	$	(6,550	)	$	91,255	$	1,438		$	(14,298	)

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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