IH Gaming, Inc.- Ilitch Holdings' casino gaming subsidiary?

There's a new subsidiary housed at Ilitch Holdings, Inc. overseeing the Family's growing casino and gambling related ventures -- of course at arms distance from its other leading brands. . . Makes a lot of sense given the likelihood that the various gaming enterprises now represent the largest chunk of annual operating income at Ilitch Holdings, Inc. and are being leveraged to contribute value to some of the other brands (sponsorships, advertising, etc.).

Here's the genesis . . .

For Ilitch to acquire the 53.3% ownership interest in MotorCity Casino controlled by Mandalay Resort Group, a merger occurred in 2005 between two parties:

1. CCM Merger Sub, Inc. (Ilitch); and


2. Circus Circus Michigan Inc., a Mandalay subsidiary and managing member of Detroit Entertainment LLC which does business as MotorCity Casino.
   

Prior to the merger, Ilitch retained 25% interest in Detroit Entertainment LLC (MotorCity Casino) by affiliation with, or control of, various other entities.

Under merger plans on file with the SEC, CCM Merger Sub, Inc. (Ilitch) got 100 shares of Circus Circus Michigan Inc. and Circus Circus Michigan Inc. (Mandalay) received $5,250,000 for each of its 100 shares. Following the merger, the surviving entity would be known as IH Gaming, Inc. and in effect the parent or managing member of Detroit Entertainment LLC.

To fund the merger, another Ilitch entity, CCM Merger, Inc., reportedly borrowed $950 million -- $300 million in junk bonds, yielding 8%, and $650 million in fixed- and variable-rate bank debt. Moody's and Standard & Poor's continue to monitor and offer ratings of these investments.

Marian Ilitch is president, secretary and treasurer of IH Gaming, Inc. and also CCM Merger, Inc.

John Kotlar, a longtime executive with various Ilitch subsidiaries and currently vice president, tax affairs for Ilitch Holdings, Inc., is “agent” for both casino related entities.

IH Gaming, Inc. and CCM Merger, Inc. are both located at the 2211 Woodward Avenue Detroit headquarters of Ilitch Holdings Inc.

Ilitch (IH Gaming, Inc.) also paid $106 million to accquire all other outstanding interests in Detroit Entertainment LLC from various minority shareholder; making Marian Ilitch the sole owner of MotorCity Casino.