Hollywood Casino Shreveport gets investment agreement from Eldorado

By Jeff Pines

Washington, Oct. 19 - Hollywood Casino Shreveport parent HCS I said it has inked a definitive investment agreement with Reno, Nev.-based Eldorado Resorts LLC.

Under the proposed restructuring, Hollywood Casino Shreveport's bondholders would get $140 million of new first mortgage notes, interest in a corporation that will have a $20 million preferred equity interest and a 25% non-voting equity interest in a reorganized Hollywood Casino Shreveport along with an amount of cash for their $189 million plus interest of their secured notes.

The agreement calls for the restructuring to be done through Chapter 11. Three of Hollywood Casino Shreveport's creditors petitioned the U.S. Bankruptcy Court for the Western District of Louisiana to throw the company into bankruptcy.

The agreement is also subject to court and regulatory approvals.

Hollywood Casino Shreveport's Chapter 11 case number is 04-13259.

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