EXHIBIT 10.26
October 21, 1998
X. Xxxxxxx Xxxxxxxxxx
President & CEO
American Gaming & Entertainment, Ltd.
Xxx Xxxxxxxx Xxxxxx
Xxxxxxx, XX 000X0
Re.: In re The Xxxxxxx Funding Group. Inc.
Case No 96-61376 (as substantively consolidated,
"Xxxxxxx")
In re Shamrock Holdings Group, Inc. ("Shamrock")
Case No. 98-63631
Dear Xx. Xxxxxxxxxx:
This letter agreement is written in connection with the Motions
(collectively, the "Motions") to Approve Compromise of Controversies filed
in each of the above-referenced bankruptcy cases regarding a compromise of
certain controversies among American Gaming & Entertainment, Ltd. ("AGEL"),
AmGam Associates ("AmGam"), American Gaming and Resorts of Mississippi,
Inc. ("AGRM"), Xxxxxxxx, Xxxxxxx, the Official Committee of Unsecured
Creditors of AmGam Associates (the "AmGam Committee"), and the Official
Committee of Unsecured Creditors of American Gaming and Resorts of
Mississippi, Inc. (the "AGRM Committee") relating to the Mississippi
bankruptcy cases of AmGam and AGRM (the "Mississippi Global Settlement
Agreement"). A hearing on the Motions is scheduled to be heard by the
United States Bankruptcy Court for the Northern District of New York ("the
Court") in the Shamrock and Xxxxxxx cases on October 22, 1998.
In connection therewith, AGEL, Xxxxxxxx and Xxxxxxx agree as follows,
1. Notwithstanding any document or agreement to the contrary,
including, without limitation, paragraph XI of the Settlement Agreement or
a certain letter agreement dated November 5, 1977 (each of which are
attached to the Motions), the
X. Xxxxxxx Xxxxxxxxxx
October 21, 1998
Page 2
Mississippi Global Settlement Agreement shall not constitute a waiver,
release, or settlement of any claim or defense held by or among AGEL,,
Xxxxxxx or Shamrock against one another; and
2. All monies to be paid to AGEL and/or Shamrock pursuant to the
Mississippi Global Settlement Agreement shall be deposited into a joint
interest-bearing account in the name of AGEL, Xxxxxxxx and Xxxxxxx pending
further order of the Court with respect to the entitlement of those parties
to the same. The interest earned thereon sha1l be allocated pro rata to the
monies deposited into the account as those monies may ultimately be
disbursed to the parties in accordance with the further order of the Court.
3. All right, title and interest of AGEL, Xxxxxxxx and Xxxxxxx in
interests granted by or in connection with the Mississippi Global
Settlement Agreement (with the exception of the $2,040,003.75 first
mortgage on or security interest in the Casino Barge (as defined in the
Mississippi Globa1 Settlement Agreement)) shall be held jointly by AGEL,
Xxxxxxxx and Xxxxxxx pending further Order of the Court.
Xxxxxxxx and Xxxxxxx recognize that XXXX is desirous of resolving all
issues relating to XXXX's indebtedness to Xxxxxxxx and agree to begin
discussions with AGEL in an effort to do so as promptly an possible.
This letter agreement is executed and delivered for the purpose of
allowing the Court to consider the Mississippi Global
X. Xxxxxxx Xxxxxxxxxx
October 21, 1998
Page 3
Settlement while preserving the respective rights of XXXX, Xxxxxxxx and
Xxxxxxx among themselves.
THE XXXXXXX FUNDING GROUP, INC, Debtor
By XXXXXXX X. XXXXXXX
_____________________
By Xxxxxxx X. Xxxxxxx, Trustee
SHAMROCK HOLDINGS GROUP, INC.,
Debtor in Possession
By XXXXXXX X. XXXXXXX
______________________
By Xxxxxxx X. Xxxxxxx, authorized officer
Acknowledged and agreed to by:
AMGAM ASSOCIATES
By X. XXXXXXX XXXXXXXXXX
_______________________
Management Committee (Title)
AMERICAN GAMING & RESORTS OF
MISSISSIPPI, Ltd.
By X. XXXXXXX XXXXXXXXXX
_______________________
President (Title)
AMERICAN GAMING & ENTERTAINMENT, LTD.
By X. XXXXXXX XXXXXXXXXX
_______________________
President and Chief Executive Officer (Title)
