Affinity gains breathing space in the midst of legal battle with Z Capital

There was finally some breathing space for Affinity Gaming in their ongoing legal battle with Z Capital Partners, their largest stakeholders. At the hearing in the Clark County Court, Mark Denton, District Judge, put a hold on the preliminary injunction, which he issued last week. According to that injunction, Affinity, owners of several casinos across the nation, was not to be allowed to get their poison pill in motion.

At this stage, the Chicago-based investment firm holds over 30 percent of stakes in Affinity Gaming. However, if the poison pill were to be unleashed, there would be a flood of new stocks filling up the market, which will reduce the investment firm’s position to mere 5 percent.

In his verdict, Denton also gave scope to Z Capital to find votes for supporting their two candidates, which the investment firm has nominated for the seven-member board of Affinity.

Z Capital, in an official statement, has said that they are all ready to buy more Affinity stocks, but they have not submitted any bid for purchasing the entire company. However, Affinity Attorneys have said that Z Capital did put up a buyout offer, as recent as last week only.

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