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FX Real Estate and Entertainment Inc. Announces Voluntary Delisting of Common Stock from NASDAQ and Receipt of Notice of Initiation of Trustee Sale Procedure against Las Vegas Property

Posted on: Tuesday, 14 April 2009, 17:13 CDT

Company Anticipates Last Day of Trading on NASDAQ on or about May 4, 2009; Plans to Seek Listing on OTC Bulletin Board

NEW YORK April 14 /PRNewswire-FirstCall/ -- FX Real Estate and Entertainment Inc. (Nasdaq: FXRE) announced that on April 8, 2009 it received notice from The NASDAQ Stock Market ("NASDAQ") indicating that, as of December 31, 2008, FXRE is no longer in compliance with NASDAQ's continuing listing requirement of a minimum of $10,000,000 in stockholders' equity.

Under the NASDAQ Marketplace Rules, FXRE is permitted to submit to NASDAQ a plan to regain compliance with NASDAQ's continued listing criteria. However, based on FXRE's deteriorating financial condition, FXRE has determined that it will not be able to regain compliance. As a result, FXRE has provided notice to NASDAQ of its intent to voluntarily delist its common stock from NASDAQ. On or about April 24, 2009, FXRE will file a Form 25 with the Securities and Exchange Commission relating to the delisting. The delisting is expected to be effective 10 calendar days after filing the Form 25. FXRE anticipates that the last day of trading for its common stock on The NASDAQ Global Market will be on or about May 4, 2009. FXRE will seek to have its common stock quoted on the Over-The-Counter Bulletin Board shortly after the date of delisting from The NASDAQ Global Market, though FXRE cannot provide any assurances in this regard.

FXRE further announced that on April 9, 2009, as a result of its Las Vegas subsidiaries continuing to be in default under the $475 million mortgage loan secured by their Las Vegas property, the first lien lenders sent a Notice of Breach and Election to Sell, which initiates the trustee sale procedure against the Las Vegas property to satisfy the principal amount of $259 million and other obligations owed to them under the mortgage loan and secured by the property.

Under Nevada law, the Las Vegas subsidiaries have the legal right to cure the default during a 35-day redemption period that expires on May 18, 2009 or else the Las Vegas property may be sold thereafter in accordance with Nevada law (the process takes approximately 120 days) in a trustee sale to satisfy the first lien lenders' obligations secured by the property. Neither FXRE nor its subsidiaries are able to cure the default. Consequently, FXRE and the Las Vegas subsidiaries are considering all possible legal options, including bankruptcy proceedings. FXRE cannot guarantee to what extent, if any, such actions may be viable or effective.

SOURCE FX Real Estate and Entertainment Inc.

Source: PR Newswire

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