Hollywood Casino Shreveport's U.S. trustee challenges court on committee appointments

By Jeff Pines

Washington, Nov. 11 - The judge in the Hollywood Casino Shreveport bankruptcy case abused his authority by ordering the Office of the U.S. Trustee to appoint a general unsecured creditors' committee and a non-bondholder unsecured creditors' committee, the trustee said.

The trustee wants the order amended or withdrawn.

Bondholders are on both sides of this involuntary Chapter 11 case. Black Diamond Capital Management LLC owns Hollywood Casino Shreveport bonds and filed an involuntary petition on Sept. 10 to throw the company into Chapter 11. On the other side are bondholders who want to sell the gaming and resort company's assets to Eldorado Resorts LLC.

On Oct. 30, judge Stephen Callaway of the U.S. Bankruptcy Court for the Western District of Louisiana ordered the trustee to appoint a non-bondholding unsecured creditors' committee in addition to the general unsecured creditors' committee.

Federal law puts the power of appointing committees in the hands of the trustee. Additional committees are appointed by courts, the trustee said.

As of Nov. 1, there were no official committees for the Hollywood Casino Shreveport case so the judge could not order the trustee to appoint any additional committees, the trustee said.

Courts are supposed to appoint committees if the committees appointed by the trustee fail to provide adequate representation, it said.

The Fort Worth, Texas-based gaming and resort company's Chapter 11 case number is 04-13259.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.