Investments in Mesquite (Mesquite)

9 Months Ended

Nov. 30, 2012

Mesquite

Schedule of Equity Method Investments [Line Items]

Investment

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 following tables present unaudited condensed financial information of Mesquite for the three and nine months endedSeptember 30, 2012 and 2011 (in thousands):

	Three Months Ended			One Month Ended			Two Months Ended			Three Months Ended
	Sept. 30, 2012			July 31, 2011			Sept. 30, 2011			Sept. 30, 2011
	(Successor)			(Predecessor)			(Successor)			(Combined)
Net operating revenues	$	20,056		$	7,138		$	13,176		$	20,314
Operating loss	$	(2,297	)	$	(988	)	$	(3,029	)	$	(4,017	)
Reorganization items	$	—		$	91,090		$	—		$	91,090
Net income (loss)	$	(3,795	)	$	89,958		$	(4,010	)	$	85,948

	Nine Months Ended			Seven Months Ended		Two Months Ended			Nine Months Ended
	Sept. 30, 2012			July 31, 2011		Sept. 30, 2011			Sept. 30, 2011
	(Successor)			(Predecessor)		(Successor)			(Combined)
Net operating revenues	$	74,553		$	60,785	$	13,176		$	73,961
Operating income (loss)	$	915		$	3,036	$	(3,029	)	$	7
Reorganization items	$	—		$	91,090	$	—		$	91,090
Net income (loss)	$	(3,532	)	$	92,693	$	(4,010	)	$	88,683