Thunderbird Resorts, Inc. (“Thunderbird”) announces: In Chile, Thunderbird
is participating in public bids to secure new casino licenses. Under the new
Chilean casino law, up to 17 new licenses are in the process of being
awarded in 2006. The Company has had a very active business development
presence in Chile since July 2003, with the objective of securing 2 to 4 new
licenses. The Company has been engaged in a “legal challenge” against the
Superintendent of Casinos who excluded the Company from the bid process
nearly 9 months ago.The Company filed for “protection recourse” in its quest
to be included as a bidder in the Chile Bid Process. On April 5, 2006, the
Santiago Court of Appeals unanimously ruled (3-0) in favor of Thunderbird’s
petitions against the Chilean Gaming Commission’s resolutions that had
excluded Thunderbird from the casino bid process. The Court of Appeals found
that the Gaming Commission’s resolutions were arbitrary and illegal. The
Chilean Gaming Commission thereafter appealed the decision to the Chilean
Supreme Court. The Supreme Court has ruled against Thunderbird by a 4 to 1
decision based on “admissibility grounds”.
Albert Atallah, General Counsel, commented that, “The Company is
disappointed that the Supreme Court did not reach the merits of the case;”
further that, “(W)e are analyzing the effect of the ruling and are
considering additional legal recourse on the merits with the understanding
that the Chilean Supreme Court has made a final determination on the
protection recourse remedy exclusively on admissibility grounds.”
The Supreme Court decision to overturn the Court of Appeals’ ruling was made
without having considered the substantive merits of Thunderbird’s case.
However, the effect of the Supreme Court ruling is that the Company is now
excluded from the bid process.
Thunderbird Resorts is a successful recreational property developer and
operator in each of its markets. Thunderbird Resorts’ success is based upon
creating genuine value for the community and for its employees and
shareholders. Thunderbird Resorts achieves its mission by offering customers
dynamic, themed and integrated venues anchored by casinos and gaming
facilities.
