Hollywood Shreveport disclosure statement approved

New York, April 22 - Hollywood Casino Shreveport's disclosure statement was approved by the U.S. Bankruptcy Court for the Western District of Louisiana Thursday.

Judge Stephen Callaway fixed the deadline for voting and objections at May 27 and scheduled a confirmation hearing for June 13.

Under the proposed plan of reorganization, Eldorado, the owner of the Eldorado Hotel & Casino, will make a $5 million contribution as plan sponsor and receive 75% of the equity of the reorganized company.

In exchange for Hollywood Casino Shreveport's old notes, $140 million of new notes will be issued. Noteholders will also receive interests in Noteholder Newco, a company that will own a 25% non-voting interest in the reorganized company and will receive distributions on a preferred capital contribution of $20 million plus a preferred return of 13% a year.

By class, the treatment of claims is:

* The $86.556 million of first mortgage note secured claims in class 3 will receive an equal principal amount of new notes for a 100% recovery on the secured portion;

* The $24.444 million of senior secured note secured claims in class 4 will receive an equal principal amount of new notes for a 100% recovery on the secured portion;

* The $126.521 million of note deficiency claims (the $237.521 million owing under the first mortgage notes and senior secured notes less the secured portions in classes 3 and 4) in class 5 will receive $140 million of new notes less the amount distributed to classes 3 and 4 plus interests in Noteholder Newco for a 30.3% recovery on the unsecured portion;

* The $13 million of general unsecured claims in class 7 will receive one-third of their claim in cash for a 33.3% recovery;

* Old equity interests will receive nothing.

Hollywood Casino Shreveport rejected an alternative proposal for reorganizing the company from Black Diamond Capital Management LLC.

Hollywood Casino Shreveport owns and operates a riverboat casino and hotel complex located on the Red River in Shreveport, La. Black Diamond and other creditors filed an involuntary Chapter 11 case against the casino and resort company on Sept. 10, 2004. The Chapter 11 case number is 04-13259.

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