SCOTTSDALE, Ariz., 4/18, 2014 -- Star Buffet, Inc. was informed yesterday that the JCRS Shopping Center (the center where Casa Bonita-Denver operates) has been sold to BSV Lamont JCRS, LLC. ("BSV Lamont"). Prior to the sale of the JCRS Shopping Center, Casa Bonita-Denver had been operating on a month-to-month lease. Unfortunately, as of yet, management has not received a lease renewal proposal from BSV Lamont that permits Casa Bonita-Denver to continue to operate profitably. BSV Lamont did agree, however, to provide Casa Bonita-Denver a short-term extension so that lease negotiations can continue. Hopefully, the two parties will be able to reach an accord that will allow Casa Bonita-Denver, which recently celebrated its 40th anniversary, to operate in Lakewood, Colorado for many years to come.
Casa Bonita-Denver has historically operated on a profitable basis. Projected cashflows from Casa Bonita-Denver's continued operations were an integral element of the company's Recapitalization Plan (the "Plan") approved in late 2012. However, at this point, if Casa Bonita-Denver is forced to close at the end of the short-term lease extension, management believes that it will still be able to fulfill all Plan commitments. Additionally, once commitments to Plan participants are met, management forecasts that the company will remain profitable, regardless of the outcome of the Casa Bonita-Denver lease negotiations.