LAS VEGAS, July 9, 2003 (PRIMEZONE) -- Mego Financial Corp. (Pink Sheets:LESR), doing business as Leisure Industries Corporation of America and its subsidiaries Leisure Homes Corporation, Leisure Services Corporation, Leisure Resorts Corporation and Atlantic Development Corporation, today filed a voluntary petition to reorganize under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Nevada.
Leisure Industries said the filing was made as the prospect of obtaining long-term financing lessened significantly, as well as the challenges from loan defaults in the recent past.
The company also said that it expects to present its plan for Debtor in Possession financing to the court by the end of the week.
Steven D. Stern, executive vice president, Ballard Communications and chief spokesperson for Leisure Industries, said, "After reviewing all available options, management concluded that a filing was necessary to preserve the assets and values of Leisure Industries' operations and to protect the interest of its key constituencies, namely our employees, suppliers, customers, and creditors.
"In Chapter 11, Leisure Industries and its subsidiaries expect to continue operating as the 'debtor in possession,'" added Stern.
"As far as the company's customers are concerned, we will continue to provide them with world-class timeshare facilities and associated services delivered without interruption and on schedule. Moreover, we have worked at maintaining close relationships with our vendors and we expect continued support from this group as we move forward in the days and months ahead," he said, adding that "our employees should notice little or no difference in their jobs as we move through this challenging period."
About Leisure Industries
Leisure Industries is a full-service, vertically integrated vacation solutions provider specializing in travel and tourism packages, the development and operation of vacation ownership resorts, marketing land for use as vacation home sites, and providing consumer financing to purchasers of vacation ownership interests and land parcels through its wholly owned subsidiary, Leisure Homes Corporation. Leisure Industries is headquartered in Las Vegas, Nevada, and has properties in Arizona, California, Nevada, New Jersey, Colorado, Florida and Hawaii. For more information on the Leisure Industries family of companies, visit www.leisureindustries.com.
Safe Harbor
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance or achievements of Leisure Industries (Mego Financial) to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference, include, but are not limited to, those discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in Mego Financial's Annual Report on Form 10-KT for the year ended December 31, 2001, and in the Form 10-Q for the quarter ended September 30, 2002, and subsequent documents filed by Mego Financial Corp. with the Securities and Exchange Commission.