Directors nominated in contested election

Monday, March 29, 1999 | 11:19 a.m.

Santa Fe Gaming Corp. of Las Vegas nominated two special directors for election to its board at its April 30 annual meeting. In the process the company urged preferred shareholders to vote against candidates nominated by the Culinary Union and other shareholders.

Because the company has missed dividend payments on its preferred shares for two straight years, its preferred shareholders have the right to elect two special directors to its board. The special directors will increase the company's board from six to eight directors.

Common stockholders elect the current six directors. Paul Lowden owns 59.6 percent of the common stock.

The special directors nominated by Santa Fe are Howard E. Foster, 54, president of investment firm Howard Foster and Co.; and Nathan J. Rogers, 82, partner in commercial real estate investment firm Rogers Bros. Investments.

Santa Fe urged preferred shareholders not to vote for two director candidates nominated by the Culinary Union and by David Lesser, general partner of Hudson Bay Partners LP, a New York investment firm. The company is in negotiations with the union over a contract covering workers at the Santa Fe hotel-casino.

Hudson Bay, owner of 31.5 percent of the company's preferred stock, also owns bonds floated by a bankrupt Santa Fe subsidiary. A bankruptcy judge recently thwarted an attempt by Hudson Bay and other bondholders to force Santa Fe Gaming itself into bankruptcy.

In addition to the Santa Fe, Santa Fe Gaming owns the Pioneer hotel-casino in Laughlin and property in Henderson and along the Las Vegas Strip.