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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark one)
/X/ Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 2005
/ / Transition Report under Section 13 or 15(d) of the Exchange Act
For the transition period from __________ to __________
Commission file number 333-112603
CATSKILL LITIGATION TRUST
-------------------------
(Exact Name of Small Business Issuer as Specified in Its Declaration of Trust)
DELAWARE 16-6547621
- ------------------------------------------- -------------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
C/O CHRISTIANA BANK & TRUST COMPANY
1314 King Street
Wilmington, Delaware 19801
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
(302) 888-7400
- --------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
- --------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that Catskill Litigation Trust was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes /X/ No / /
As of May 13, 2005, 22,702,896 Units of beneficial interest were
outstanding.
Transitional Small Business Disclosure Format (check one): Yes / / No /X/
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CATSKILL LITIGATION TRUST
FORM 10-QSB
INDEX
PART I - FINANCIAL INFORMATION Page
ITEM 1. CONDENSED FINANCIAL STATEMENTS (unaudited)
Condensed Balance Sheet as of March 31, 2005 3
Condensed Statements of Operations for the three
months ended March 31, 2005 and for the
period January 12, 2004 (Date of Inception) to March 31, 2004 4
Condensed Statements of Cash Flows for the period
three months ended March 31, 2005 and for the period
January 12, 2004 (Date of Inception) to March 31, 2004 5
Notes to Condensed Financial Statements 6-9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION 10-12
ITEM 3. CONTROLS AND PROCEDURES 12
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 13
ITEM 6. EXHIBITS 13
SIGNATURES 14
2
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
CATSKILL LITIGATION TRUST
CONDENSED BALANCE SHEET
March 31, 2005
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 6,217
---------
Total Current Assets 6,217
---------
TOTAL ASSETS $ 6,217
=========
LIABILITIES AND TRUST DEFICIENCY
Current Liabilities
Accrued legal and administrative expenses $ 100,044
Line of credit-related party 500,000
---------
Total Current Liabilities $ 600,044
Trust Deficiency
Units of Beneficial Interest: authorized
22,702,896; issued and outstanding 22,702,896 18,591
Accumulated deficit (612,418)
---------
Total Trust Deficiency (593,827)
---------
TOTAL LIABILITIES AND TRUST DEFICIENCY $ 6,217
=========
The accompanying notes are an integral part of these condensed financial
statements
3
CATSKILL LITIGATION TRUST
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited) For the Period from
For the January 12, 2004
Three Months Ended (Date of Inception) to
March 31, 2005 March 31, 2004
-------------------------------------------
General and Administrative Expenses:
Litigation Trustee Fees $ 30,000 $ 26,130
Administrative Trustee Fees 1,500 6,000
Consulting Fees 1,500 6,000
Legal Fees 156,250 71,204
Accounting Fees 10,000 17,183
Interest 6,875 --
Other 2,187 990
------------ ------------
Total General and Administrative Expenses $ 208,312 $ 127,507
Other Income 954 --
------------ ------------
Net Loss $ (207,358) $ (127,507)
============ ============
Loss per unit outstanding $ (0.01) $ (0.01)
============ ============
Weighted average units outstanding 22,702,896 22,702,896
============ ============
The accompanying notes are an integral part of these condensed financial
statements.
4
CATSKILL LITIGATION TRUST
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Period from
For the January 12, 2004
Three Months Ended (Date of Inception) to
March 31, 2005 March 31, 2004
-----------------------------------------------
OPERATING ACTIVITIES
Net Loss $(207,358) $(127,507)
Adjustments to reconcile net loss to net cash used in operations:
Imputed interest expense 6,875
Decrease in accounts payable (47,302)
Increase in accrued legal and administrative expenses -- 127,507
--------- ---------
Net cash used in operating activities $(247,785) $ --
--------- ---------
Decrease in Cash $(216,276) $ --
Cash and cash equivalents-beginning of period $ 222,493 $ --
--------- ---------
Cash and cash equivalents- end of period $ (25,292) $ --
========= =========
The accompanying notes are an integral part of these condensed financial
statements.
5
CATSKILL LITIGATION TRUST
Notes to Condensed Financial Statements--March 31, 2005 (Unaudited)
NOTE 1 - THE TRUST
The Catskill Litigation Trust is a Delaware statutory trust (the
"Litigation Trust") formed by Empire Resorts, Inc. ("Empire Resorts"),
Monticello Raceway Management, Inc., ("MRMI"), Monticello Casino
Management, L.L.C., Monticello Raceway Development Company, L.L.C.
("MRDC") and Mohawk Management, L.L.C. ("Mohawk"). On January 12, 2004,
22,702,896 units of beneficial interest were issued to the members and
stockholders of those entities. At that time, Empire Resorts, Catskill
Development, L.L.C. ("Catskill"), MRMI, Mohawk, Joseph E. Bernstein,
Paul A. deBary (Messrs. Bernstein and deBary are hereinafter referred
to as the "Litigation Trustees") and Christiana Bank and Trust Company
(the "Administrative Trustee") entered into the Declaration of Trust of
Catskill Litigation Trust (the "Declaration of Trust").
In the Declaration of Trust, Catskill, MRDC and Mohawk assigned to the
Litigation Trust all of their claims under or related to the alienation
and frustration of their agreements and business relations with the St.
Regis Mohawk Tribe and their rights to any judgment or settlement that
may arise from any litigation relating to two litigations entitled
Catskill Development, L.L.C., Mohawk Management L.L.C. and Monticello
Raceway Development Company L.L.C., Plaintiffs v. Park Place
Entertainment Corporation, Defendant (the "PPE Case") and Catskill
Development, L.L.C., Mohawk Management, L.L.C., Monticello Raceway
Development Company, L.L.C., Plaintiffs v. Gary Melius, Ivan Kaufman,
Walter Horn, President R.C. - St. Regis Management Company, et al,
Defendants (hereinafter referred to, collectively with the PPE Case, as
the "Litigation"). If at any time the Litigation Trustees determine, in
their absolute discretion, that the assets of the Litigation Trust are
not sufficient to justify its continuance, the Litigation Trustees are
authorized to terminate the Litigation Trust. In addition, the
Litigation Trust is to terminate on the date that all litigation has
been fully prosecuted to final judgment or dismissal, including all
appeals, and all Litigation Trust assets have been distributed to the
Litigation Trust's beneficiaries.
NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
These condensed financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of
America, and with Form 10-QSB and Item 310 of Regulation S-B of the
Securities and Exchange Commission. In the opinion of the Litigation
Trustees, the accompanying condensed financial statements contain all
the adjustments necessary (consisting only of normal recurring
accruals) to present fairly the financial position, results of
operations and cash flows as of March 31, 2005 and for the three months
then ended. Operating results for the three months ended March 31, 2005
are not necessarily indicative of the results that would be expected
for the year ended December 31, 2005.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed
6
or omitted. It is suggested that these financial statements be read in
conjunction with the audited financial statements and notes thereto
included in the report on Form 10-KSB for the period January 12, 2004
(date of inception) to December 31, 2004.
USE OF ESTIMATES IN THE FINANCIAL STATEMENTS
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
the Litigation Trustees to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on account, demand deposits and
certificates of deposit with original maturities of three months or
less at acquisition and money market funds. From time to time, the
Litigation Trust maintains significant cash balances that are not
covered by the Federal Deposit Insurance Corporation. The Litigation
Trust has not incurred any losses in such accounts and the Litigation
Trustees believe it is not exposed to any significant credit risk on
cash.
INCOME TAXES
For federal income tax purposes, the Litigation Trust is treated as a
grantor trust. Under the grantor trust rules, each holder of a unit of
beneficial interest is treated as the owner of his or her share of the
Litigation Trust's assets. The treatment of income and expense items
under accounting principles generally accepted in the United States of
America may differ from the tax treatment of such items. Expenses
incurred by the Litigation Trust will be capitalized for tax purposes.
NOTE 3 - LINE OF CREDIT-RELATED PARTY
Empire Resorts, a related party, has provided the Litigation Trust with
a line of credit of up to $2,500,000. The line of credit can be used to
pay all expenses of the Litigation Trust permitted under the
Declaration of Trust, including but not limited to professional fees
and the fees and expenses of the Litigation and Administrative
Trustees. The line of credit is non-interest bearing and is to be
repaid from any amounts received from litigation settlements or awards.
The line of credit expires upon the termination of the Litigation
Trust.
As of March 31, 2005, $500,000 has been drawn against the line of
credit.
The Litigation Trust imputed interest on the borrowings at Empire
Resorts' borrowing rate (5.50% per annum at March 31, 2005). Interest
expense for the three months ended March 31, 2005 and for the period
January 12, 2004 (date of inception) to March 31, 2004 amounted to
$6,875 and $0, respectively, and was deemed contributed capital to the
Litigation Trust.
7
NOTE 4 - DISTRIBUTIONS
The distribution of any net proceeds from litigation settlements or
awards, after amounts are applied to cover all current or expected
expenses of the Litigation Trust, is to be made at the sole discretion
of the Litigation Trustees and will be distributed as follows:
First: To pay the Litigation Trustees their fees arising from
litigation settlements or awards. (See Note 5)
Second: To reimburse $7,500,000 to Empire Resorts for expenses incurred
in connection with the Litigation prior to the formation of the
Litigation Trust and, in addition, to repay Empire Resorts any amounts
outstanding under the line of credit.
Third: If any amount remains after the above requirements are met, such
amount remaining is to be divided among the beneficiaries of the
Litigation Trust in proportion to their ownership of units as of the
date the distribution is made.
NOTE 5 - COMMITMENTS AND CONTINGENCIES
COMPENSATION OF LITIGATION TRUSTEES
Each of the two Litigation Trustees is entitled to annual compensation
of $60,000 plus reimbursement of expenses incurred carrying out the
purpose of the Litigation Trust. In addition, one litigation trustee is
entitled to 4%, and the other 1%, of any litigation settlements or
awards.
COMPENSATION OF THE ADMINISTRATIVE TRUSTEE
The Administrative Trustee is entitled to a $5,000 acceptance fee
(which includes the first month administrative fee) and a monthly
administrative fee of $500. In addition, the Administrative Trustee is
entitled to a custody fee on certain cash balances and marketable
securities of .5% per annum on the first $10,000,000 of fair value and
3% on the excess and reimbursement for certain fees and expenses.
EXPENSES PAID PRIOR TO THE FORMATION OF THE LITIGATION TRUST
As discussed in Note 4, the Litigation Trust is obligated to pay to
Empire Resorts up to $7,500,000. This amount represents expenses
incurred prior to the formation of the Litigation Trust. The amount is
payable solely from the proceeds of litigation settlements or awards.
REPAYMENTS OF AMOUNTS DRAWN UNDER THE LINE OF CREDIT-RELATED PARTY
As discussed in Note 4, the expenses of the Litigation Trust are
expected to be paid from draws under the line of credit. Amounts drawn
under the line of credit are to be repaid from any amounts received
from litigation settlements or awards.
ADDITIONAL AMOUNTS PAYABLE TO APPEALS COUNSEL
Under the terms of the Litigation Trust's arrangement with the law firm
handling its appeal, additional fees in an aggregate amount not to
exceed $100,000 may be payable to that firm. The exact amount payable
in the event of a reversal of the decision by the trial court will vary
from $50,000 to $100,000 depending on the precise nature of the
outcome.
8
NOTE 6 - CERTAIN RELATIONSHIPS
The Litigation Trustees are both currently members of Empire Resorts'
Board of Directors.
NOTE 7 - SUBSEQUENT EVENTS
Following the re-entry of an adverse judgment with respect to the PPE
case in the District Court in the fourth quarter of 2004, the
Litigation Trust recommenced an appeal to the Court of Appeals for the
Second Circuit. The appellant's brief in the appeal was filed on April
1, 2005. A reply brief is currently due on June 9, 2005. It is not
likely that the appeal will be scheduled for oral arguments prior to
late August of 2005 or that a decision in the appeal will be issued
prior to the first quarter of 2006.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Forward-Looking Statements
This Report on Form 10-QSB contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as amended and
Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"). All statements other than statements of historical facts included in this
Report, including without limitation, the statements under "General," and
"Liquidity and Capital Resources," are forward-looking statements. All
subsequent written and oral forward-looking statements attributable to the
Litigation Trust or persons acting on its behalf are expressly qualified in
their entirety by the cautionary statements.
The following discussions should be read in conjunction with our
financial statements and the related notes thereto and other financial
information appearing elsewhere in this report. The following discussion
contains forward-looking statements that involve risks and uncertainties. Our
actual results could differ materially from those anticipated in the
forward-looking statements as a result of various factors, including those
discussed elsewhere in this report.
General
We are a statutory trust created under Delaware law. Our formation
was a condition to the consolidation of Empire Resorts, Inc. ("Empire Resorts"),
Monticello Raceway Management, Inc., ("MRMI"), Monticello Casino Management,
L.L.C. ("MCM"), Monticello Raceway Development Company, L.L.C. ("MRDC") and
Mohawk Management, L.L.C. ("Mohawk"). Also as a condition to that consolidation,
each of Catskill Development, L.L.C. ("Catskill"), MRDC, and Mohawk, agreed to
assign to us all of their claims under or related to the alienation and
frustration of their agreements and business relations with the St. Regis Mohawk
Tribe. That assignment included rights to any proceeds from any settlement or
award that may arise from any litigation relating to that claim. Our litigation
claims arise from the efforts of each of Catskill, MRDC, and Mohawk to develop
with the St. Regis Mohawk Tribe a gaming casino in Monticello, New York. The
plaintiffs spent several years and substantial funds to develop and obtain
required approvals for the casino. Subsequently, Park Place Entertainment
Corporation, the world's largest gaming corporation and Atlantic City's largest
casino operator, entered into an agreement providing for the St. Regis Mohawk
Tribe to commit their future casino development efforts exclusively to Park
Place Entertainment Corporation. That agreement conflicted with the Mohawk
Tribe's agreements with Catskill, MRDC and Mohawk.
There is one lawsuit presently pending and one lawsuit that has been
discontinued. The first lawsuit is Catskill Development, L.L.C., Mohawk
Management, L.L.C., and Monticello Raceway Development Company, L.L.C.,
Plaintiffs. v. Park Place Entertainment Corporation, Defendant. (Civil Action
No. 00CIV8660 (CM) (GAY)) (United States District Court Southern District of New
York) referred to herein as the "PPE case". This lawsuit had initially been
dismissed on a motion for summary judgment. However, the trial court
subsequently vacated the earlier decision granting summary judgment to Park
Place Entertainment, in order to consider new evidence and allow additional
discovery proceedings. After these proceedings were completed the dismissal was
reinstated. An appeal has been taken and a brief has been filed by the Trust. A
reply brief is currently due on June 9, 2005. It is not likely that the appeal
will be scheduled for oral arguments prior to late August of 2005 or that a
decision in the appeal will be issued prior to the first quarter of 2006. The
second lawsuit is Catskill Development, L.L.C., Mohawk Management, L.L.C., and
Monticello Raceway Development Company, L.L.C., Plaintiffs. against Gary Melius,
Ivan Kaufman, Walter Horn, President R.C. - St. Regis Management Company, et al,
Defendants. (Index No. 891/03) (Supreme Court of the State of New York County of
10
Sullivan). This lawsuit has been discontinued under an agreement that permits it
to be refiled at a future date without being barred by the statute of
limitations. Our purposes are the prosecution of our litigation claims through
the recovery of any settlement or final judgments and the distribution of the
net amount of any such recoveries to our beneficiaries.
The administration of our Litigation Trust will involve the
authentication and payment of fees and expenses for legal and related services
in connection with our litigation claims, reporting and regulatory compliance
and the maintenance of litigation, financial and unitholder records.
Administrative expenses are currently estimated to be approximately $200,000 per
year, including the fees of the litigation and administrative trustees, auditors
and accountants and other support services. Legal fees and other expenses
involved in our litigation claims are impossible to predict with any degree of
accuracy. No assurance can be given that the amounts available to us for the
payment of such expenses under our line of credit will be sufficient to carry
our litigation claims through to a successful conclusion or that alternative
funds will be available for such purpose.
Our unit holders will only be entitled to the net proceeds from any
settlement or award, if any, of our litigation claims after the payment of our
expenses, the fees of our litigation trustees, any amounts outstanding under our
line of credit and $7,500,000 to Empire Resorts for reimbursement of prior
expenses incurred in connection with our litigation claims.
RESULTS OF OPERATIONS
For the three months ended March 31, 2005, we reported a net loss of $207,358.
Included in these net losses are legal fees of $156,250 (of which legal fees
related to litigation were $144,250), and administrative expenses of $45,187,
offset by dividend income of $954, but no proceeds from any litigation. For the
period January 12, 2004 (date of inception) through March 31, 2004, we reported
a net loss of $127,507. Included in this net loss are legal fees of $71,204 (of
which legal fees related to litigation were $65,489), and administrative
expenses of $56,303 offset by dividend income of $0, but no proceeds from any
litigation.
The first quarter results reflect increased legal expenses relating to
litigation due to the preparation of briefs for the appeal, but reduced legal
fees related to administration due to the initiation of a flat fee arrangement.
Following the re-entry of an adverse judgment with respect to the PPE case in
the District Court in the fourth quarter of 2004, the Trust recommenced an
appeal to the court of Appeals for the Second Circuit. Our briefs in the appeal
were filed on April 1, 2005. A reply brief is currently due on June 9, 2005. It
is not likely that the appeal will be scheduled for oral arguments prior to late
August of 2005 or that a decision in the appeal will be issued prior to the
first quarter of 2006. Under our agreement with counsel arguing the appeal, fees
related to arguing the appeal will be contingent on the resulting decision. As a
result, we do not expect significant expenses related to the appeal or a trial
(which is itself dependent on the outcome of the appeal) until at least the
first quarter of 2006.
On June 1, 2004, we filed a Voluntary Discontinuance and Tolling Agreement with
respect to the second lawsuit. Since there are many issues of fact and law in
the PPE case which relate to matters that are also at issue in the second
lawsuit, we believe that, as long as the right to recommence the suit without
regard to the statute of limitations was preserved, the discontinuance of this
suit was appropriate in order to avoid the cost of maintaining two separate
lawsuits.
11
LIQUIDITY AND CAPITAL RESOURCES
Empire Resorts has provided us with an irrevocable line of credit of
up to $2,500,000 to provide funds to pay any and all of our expenses permitted
under the Declaration of Trust. No interest is payable on amounts advanced under
our line of credit. Amounts outstanding under our line of credit are to be
repaid by us from proceeds received from any settlement or award in connection
with our litigation claims after payment of an amount necessary to pay our
Litigation Trustees the fees for their services as set forth in the Declaration
of Trust. Repayments of amounts outstanding under our line of credit may be made
as a whole or in part from time to time at any time without notice. We may
reborrow any amounts so repaid. Our line of credit will remain in full force and
effect until our termination. The Litigation Trust imputes interest on the
borrowings at Empire Resorts borrowing rate (5.5% per annum at March 31, 2005).
Empire Resorts is a holding company, owning all the capital stock or
membership interests of certain other entities. Empire Resorts is therefore
dependent on these other entities to pay dividends or make distributions in
order to generate internal cash flow and to satisfy its obligations, including
its obligations under our line of credit. There can be no assurance, however,
that these other entities will generate enough revenue to pay cash dividends or
make cash distributions. In addition, these entities may enter into contracts
that limit or prohibit their ability to pay dividends or make distributions.
Empire Resorts had no operating revenue during the fiscal year ended
December 31, 2003 and operating revenue of $44.9 million for the fiscal year
ended December 31, 2004 and $16.6 million for the three months ended March 31,
2005 and sustained net operating losses of approximately $8.0, $12.7 and $3.2
million, respectively, during such periods. Although Empire Resorts
significantly increased its level of operations during the third and fourth
quarters of 2004 and the first quarter of 2005, it has yet to demonstrate that
such operations can be profitable. Therefore, there can be no assurance that
Empire Resorts will have the ability to meet its obligations under our line of
credit.
ITEM 3. CONTROLS AND PROCEDURES
(a) The Litigation Trust carried out an evaluation, under the supervision and
with the participation of the Trust's management, including Joseph E. Bernstein
(acting Chief Executive Officer) and Paul A. deBary (acting Chief Financial
Officer), the Litigation Trust's Litigation Trustees, of the effectiveness of
the design and operation of the Litigation Trust's "disclosure controls and
procedures", as such term is defined in Exchange Act Rule 15d-15e, as of the end
of the period covered by this report. Based upon that evaluation, Messrs.
Bernstein and deBary have concluded that the Litigation Trust's disclosure
controls and procedures were effective as of the end of the period covered by
this report to provide reasonable assurance that information required to be
disclosed by the Litigation Trust in reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in SEC rules and forms.
(b) There have been no significant changes in the Litigation Trust's internal
controls or in other factors that could significantly affect the Litigation
Trust's internal controls subsequent to the date the Litigation Trust carried
out this evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
A control system, no matter how well conceived and operated, can
provide only reasonable, not absolute assurance that the objectives of the
control system are met. Because of the inherent limitations in all control
systems, no internal controls can provide absolute assurance that all control
issues and instances of fraud, if any, within a company have been detected.
12
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are a statutory trust created under Delaware law. Our formation
was a condition to the consolidation of Empire Resorts with MRMI, MCM, MRDC, and
Mohawk. Also as a condition to that consolidation, each of Catskill, MRDC and
Mohawk, agreed to assign to us all of their claims under or related to the
alienation and frustration of their agreements and business relations with the
St. Regis Mohawk Tribe. That assignment included rights to any proceeds from any
settlement or award that may arise from any litigation relating to that claim.
Our litigation claims arise from the efforts of each of Catskill, MRDC and
Mohawk to develop with the St. Regis Mohawk Tribe a gaming casino in Monticello,
New York. We spent several years and substantial funds to develop and obtain
required approvals for the casino. Subsequently, Park Place Entertainment
Corporation, the world's largest gaming corporation and Atlantic City's largest
casino operator, entered into an agreement providing for the St. Regis Mohawk
Tribe to commit their future casino development efforts exclusively to Park
Place Entertainment Corporation. That agreement conflicted with the Mohawk
Tribe's agreements with Catskill MRDC and Mohawk. There is one lawsuit presently
pending and one lawsuit that has been discontinued. The first lawsuit is
Catskill Development, L.L.C., Mohawk Management, L.L.C., and Monticello Raceway
Development Company, L.L.C., Plaintiffs. v. Park Place Entertainment
Corporation, Defendant. (Civil Action No. 00CIV8660 (CM)(GAY)) (United States
District Court Southern District of New York). This lawsuit had initially been
dismissed on a motion for summary judgment. However, the trial court vacated the
earlier decision granting summary judgment to Park Place Entertainment, in order
to allow consideration of new evidence and additional discovery proceedings.
Following those proceedings judgment in favor of the defendant was reinstated.
This judgment has been appealed. Briefs have been or are being filed, but
arguments are not expected to be heard prior to the third quarter of 2005. The
second lawsuit is Catskill Development, L.L.C., Mohawk Management, L.L.C., and
Monticello Raceway Development Company, L.L.C., Plaintiffs. against Gary Melius,
Ivan Kaufman, Walter Horn, President R.C. - St. Regis Management Company, et al,
Defendants. (Index No. 891/03) (Supreme Court of the State of New York County of
Sullivan). This lawsuit has been discontinued under an agreement that permits it
to be refiled at a future date without being barred by the statute of
limitations. Our purposes are the prosecution of our claims now through the
recovery of any settlement or final judgments and the distribution of the net
amount of any such recoveries to our beneficiaries.
ITEM 6. EXHIBITS
a: Exhibits
*31.1 Certification of Acting Chief Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2 Certification of Acting Chief Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
*32.1 Certification of the Acting Chief Executive Officer
pursuant to 18 U.S.C. Section 1350 adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
*32.2 Certification of the Acting Chief Financial Officer
pursuant to 18 U.S.C. Section 1350 adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
*Filed herewith
13
SIGNATURES
In accordance with the requirements of the Exchange Act, Catskill
Litigation Trust caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CATSKILL LITIGATION TRUST
(Registrant)
DATE: May 13, 2005 By: /s/ Joseph E. Bernstein
-----------------------------
Joseph E. Bernstein
Litigation Trustee
DATE: May 13, 2005 By: /s/ Paul A. deBary
-----------------------------
Paul A. deBary
Litigation Trustee
14
