Statement From Henry Gusky, Esquire, President Casinos, Inc.'s Liquidation Trustee

ST. LOUIS, Oct. 14 /PRNewswire/ -- The President Casinos, Inc.'s Liquidation Estate won a substantial victory on its breach of contract and tort claims in the United States District Court in St. Louis, successfully appealing from the judgment previously entered against it in the St. Louis Bankruptcy Court. The District Court's ruling in President Casinos v. Columbia Sussex Corp., Case No. 4:08CV166 (HEA), reversed the previous ruling of the Bankruptcy Court and entered summary judgment in favor of President Casinos, awarding over $28 million in damages and approximately $13.5 million in pre-judgment interest. The District Court also remanded the matter to the Bankruptcy Court for a determination as to whether the interest portion of the judgment should be reduced. Once the Bankruptcy Court's determination has been made and the District Court's judgment becomes final, Columbia Sussex will have thirty (30) days to appeal to the Eighth Circuit Court of Appeals.

President Casinos previously filed its action for damages for breach of contract and prima facie tort regarding the failed sale of its St. Louis river boat casino operation to Columbia Sussex in the St. Louis Bankruptcy Court. After submitting the highest bid to purchase the casino and undergoing the rigorous application process for a gaming license, Columbia Sussex withdrew its gaming license application before a decision was made and terminated its sale contract with President Casinos giving, as the reason, that it did not believe it would receive the gaming license. President Casinos sued for breach of contract and also asserted a tort claim against Columbia Sussex for raising parking rates 560% for the casino patrons in retaliation for President Casinos' institution of the lawsuit. The Bankruptcy Court entered summary judgment in favor of Columbia Sussex on the contract claim and in favor of President Casinos on the tort claim.

On September 25, 2009, the Honorable Henry E. Autrey, United States District Court Judge for the Eastern District of Missouri, reversed the Bankruptcy Court and entered summary judgment in favor of President Casinos on its breach of contract claim. Judge Autrey concluded that Columbia Sussex could not rely on its withdrawal of its license application to excuse its obligation to buy the casino and thus was in breach of contract. Judge Autrey awarded President Casinos over $42 million in contractual damages and interest for Columbia Sussex's breach. He also affirmed the Bankruptcy Court's ruling in favor of President Casinos on the prima face tort claim.

Subject to the terms and conditions of President Casino's confirmed Chapter 11 Plan of Liquidation and the Liquidation Trust, only President Casinos' stockholders of record as of December 8, 2008, the effective date of the Chapter 11 Plan of Liquidation, will be entitled to distributions, if any, from the Liquidation Trust, and all outstanding shares of stock of President Casinos is treated as cancelled as of December 8, 2008. The amount and timing of such distributions, if any, are subject to the outcome of the Bankruptcy Court's decision regarding the amount of the interest, any appeals of the judgment and President Casinos' success in collecting on any final judgment. President Casinos is unable to make any assessment with respect to the amount of such distributions, if any, and the timing thereof.

President Casinos, Inc. is represented in this matter by partners Joseph D. Pizzurro and Nancy E. Delaney of New York City's Curtis, Mallet-Prevost, Colt & Mosle, LLP which took over the case on the appeal from the Bankruptcy Court.

Computershare Trust Company, N.A., the Distribution Agent for President Casinos, Inc.'s Liquidation Trust, can be reached at 1-800-969-3386.

SOURCE President Casinos, Inc.