Elsinore ends Four Queens management deal

Tuesday, Sept. 7, 1999 | 10:51 a.m.

Elsinore Corp. said it terminated an agreement with a Riviera Holdings Corp. subsidiary that managed Elsinore's Four Queens hotel-casino.

Elsinore said it named 30-year gaming executive Dual Cooper as general manager of the downtown Las Vegas property. No explanation was given for the decision to end the management agreement.

The pact called for Riviera's Riviera Gaming Management-Elsinore subsidiary to receive an annual management fee of $1 million, plus 25 percent of any cash flow above $8 million for the year.

Elsinore reported cash flow of $6.8 million for the first six months of 1999, a run rate of $13.6 million. At that pace, the Riviera unit would have been eligible for another $1.4 million in compensation this year.

The agreement also provided for Riviera to receive warrants to purchase Elsinore stock at $1 a share. Elsinore last traded at 31.25 cents a share.

Riviera Holdings owns the Riviera hotel-casino on the Strip and is building another casino in Black Hawk, Colo. Its stock last traded at $5.25 a share.