Riviera Holdings Corporation (AMEX:RIV) today announced that it has signed definitive agreements with two existing shareholders enabling them to increase their holdings to up to 15% of the Company's outstanding common stock.
Under the agreements, which are separate but substantially identical, Plainfield Special Situations Master Fund Limited and Desert Rock Enterprises LLC, each of whom currently owns under 10% of the Company's outstanding shares, may acquire common stock from Riviera or from a seller or sellers other than the Company.
Among other things, the agreements provide for: the waiver of the Company's voting limitation set forth in its Articles of Incorporation, an agreement by both Plainfield and Desert Rock not to acquire over 15% of Riviera's common stock, unless approved by the Company's Board of Directors, a standstill agreement which ends on either the day following the Company's 2010 annual stockholders' meeting, September 1, 2010, or the ending of any period during which another investor is subject to a similar standstill, whichever comes first, and that Plainfield and Desert Rock obtain any approvals that may be required from the Nevada and Colorado gaming authorities in connection with any acquisition.
Riviera has no plans at the present time to issue and sell any shares of its common stock to either Plainfield or Desert Rock.
