Firm claims to be negotiating financing for purchase of IP

Thursday, Dec. 28, 2000 | 11:48 a.m.

A California group, apparently unknown in gaming industry circles, today announced it's trying to arrange financing for its client's proposed purchase of the Las Vegas Strip's Imperial Palace hotel-casino.

Secure Financial Services LLC said it is representing Mike Yancey, president of Crown Capital Commercial Corp. of San Francisco, "in facilitating the acquisition, redevelopment and expansion" of the Imperial Palace.

But Ed Crispell, general manager of the Imperial Palace, said there have been no talks or correspondence with the California group.

"There is no deal. There is no transaction," Crispell said.

Dave Ehlers, an analyst with Las Vegas Investment Advisors, said he is aware of plans by owner Ralph Engelstad to sell the 2,700-room Las Vegas Imperial Palace, but he has no knowledge of Crown Capital or its plans to acquire the property.

"I haven't heard anything about this," Ehlers said. "But it usually isn't the type of thing we're going to hear much about, unless it's a public company."

Paul Towsley of San Diego, who said he's a financier associated with Secure Financial, said Yancey's group has a handshake deal to negotiate the purchase. But he said there is no signed purchase agreement and a sales price has not been negotiated.

Engelstad told the Sun Herald, a Mississippi newspaper, in November he planned to retire and was liquidating assets, potentially including his 1,100-room casino in Biloxi, Miss., for which Engelstad is asking $200 million.

Crispell said Thursday that Engelstad would also look at legitimate offers for the sale of the Las Vegas property.

"But no one has come to the table with an appropriate offer yet," Crispell said.