Notes Receivable, Tribal Governments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Receivable, Tribal Governments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NOTES RECEIVABLE, TRIBAL GOVERNMENTS |
The Company has a note receivable related to advances made to, or on behalf of, Nambé Pueblo
to fund tribal operations and development expenses related to a potential casino project.
Repayment of this note is conditioned upon the development of the project, and ultimately,
the successful operation of a casino. Subject to such condition, the Company’s agreements
with the Nambé Pueblo tribe provide for the reimbursement of these advances plus applicable
interest, if any, either from the proceeds of any outside financing of the development, and
the actual operation itself.
Note receivable from tribal governments was as follows:
In the first quarter of 2008, the Company received notice that the Nambé Pueblo tribal
council had effectively terminated the business relationship with Full House. The
development agreement between the Company and the Nambé Pueblo provides that the Company is
entitled to recoup its advances from future gaming revenues, even if the Company does not
ultimately develop the project. The Company is in discussions with the Nambé Pueblo and the
developer to determine the method and timing of the reimbursement of our advances to date of
$0.7 million. Management is currently engaged in assisting the Nambé Pueblo in the process
of obtaining financing to develop a small casino or slot parlor addition to their existing
travel center. The financing process has proceeded more slowly than expected and in light of
current economic conditions and credit market weaknesses, there can be no assurance that a
facility will ever open or that the Company will receive all, or any, payment on the note
receivable. With due consideration to the foregoing factors, management has fully reserved
the value of the note receivable from the Nambé Pueblo to $0 as of September 30, 2011 and
recognized the impairment of the note receivable during the current quarter.
The following table summarizes changes in the estimated fair value of notes receivable from
tribal governments, determined using level 3 estimated fair value inputs, from January 1,
2011 to September 30, 2011:
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