Arbitration Decision On Blue Sky Resorts Ownership Would Reduce Cook's Ability to Support Charities and Economic Development in French Lick Area

Bloomington, Ind. - The Cook family and the Cook organization will have less funding available to support charitable and economic development activities in the Orange County region if a decision by an arbitration panel over ownership of the French Lick Springs Resort and Casino is upheld, Cook officials said today.

However, Cook officials emphasized that the decision announced today in no way diminishes the involvement of the Cook organization or the Cook family's ongoing efforts to support the Indiana General Assembly's vision of sustainable economic growth in the French Lick area and to ensure the successful completion and operation of the $382 million project.

"When the Cooks first became involved in restoring the West Baden Springs Hotel more than a decade ago, there was no assurance whatsoever that a gaming license would ever be available in the French Lick area. Their intent was to preserve and restore one of the America's greatest architectural and historic treasures," said Steve Ferguson, chairman of Cook Group Inc. "From the earliest stages of the resort project, our intent has been to recreate the grandeur and majesty of a bygone era. Our actions have been to complete an important historic preservation project, provide economic development to Orange County, and establish a not-for-profit company to direct resort profits back into the community for the benefit of Orange County residents and the State in general."

In a narrow two-to-one vote announced today, an arbitration panel ruled against a contention by Orange County Holdings, LLC (OCH) that under the terms of its agreement with Lauth, OCH's share of ownership the resort project should be increased to 75 percent because a key financing deadline was missed. Orange County Holdings is the company created by the Cook family to manage its share of the proceeds from resort and casino operations. The company will channel 90 percent of those proceeds after debt service back into charitable and economic development projects directly benefiting the Orange County region. The remaining 10 percent of Cook's share of the proceeds are owned by the Carl A. Cook Trust and SLF Orange County Investments, entities associated with two major Cook shareholders in the project, Carl Cook and Steve Ferguson.

OCH is exploring its legal options and intends to vigorously pursue its case. By reducing OCH's share of the resort's ownership by 25 percent, the interim decision - if upheld on appeal - will significantly reduce the funds available from casino and hotel profits going to OCH's regional charitable and economic development projects, OCH officials said today in reaction to the decision.

Despite the legal dispute, the newly refurbished French Lick Springs Hotel and its adjacent casino are opening well before the Indiana Gaming Commission's Dec. 31, 2006 deadline. During the hotel's "soft opening" last month and the casino's preview day earlier this week, the resort received rave reviews and positive press in The New York Times and many other national, regional and local publications. The hotel is completely booked for tonight and tomorrow with patrons eager to sample the restored property's turn-of-the-last-century elegance and attention to historic detail.

Attributed mainly to the upsurge in casino and resort hiring, Orange County also has shown the largest regional drop in unemployment rates, according to the latest state figures. Unemployment, which has been among the State's highest, dropped by more than a full percentage point in September from 7.4 percent to 6.3 percent.

Cook Group, Inc.
The world's largest privately held medical device manufacturer with international headquarters in Bloomington, Ind., COOK® (www.cookgroup.com) is a leading designer, manufacturer and global distributor of minimally invasive medical device technology for diagnostic and therapeutic procedures. Cook Group also owns and operates real estate, retail management and travel services businesses. Through its real estate development and management company, CFC, Inc., the Cook Group family of companies has placed a special emphasis on preserving architecturally significant buildings in Bloomington and south central Indiana.

MEDIA CONTACT:
David McCarty
Director of Public Relations
Cook Incorporated - 812-339-2235 ext. 2387
Email: dmccarty@cook-inc.com

Back to Previous Page