Hollywood Casino Shreveport plan of reorganization takes effect

By Caroline Salls

Pittsburgh, Aug. 10 - Hollywood Casino Shreveport's plan of reorganization became effective July 21, according to a Wednesday filing with the U.S. Bankruptcy Court for the Western District of Louisiana.

The plan was confirmed on July 6.

Under the plan, Eldorado Resorts, LLC, 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 addition $140 million of new notes will be issued in exchange for Hollywood Casino Shreveport's old notes. In addition, noteholders will 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 $86.5 million of first mortgage note secured claims in class 3 will receive an equal principal amount of new notes for a 100% recovery;

* The $24.44 million of senior secured note secured claims in class 4 will receive an equal principal amount of new notes for a 100% recovery;

* The $132.521 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 30.6% recovery;

* The $36 million of general unsecured claims in class 7 will receive 52% of their claim in cash for a 33.3% recovery;

* Old equity interests will receive nothing.

A total of $12 million in claims of Broadmoor/Roy Anderson Corp. and Roy Anderson Corp. claims will be allowed as general unsecured claims.

Hollywood Casino Shreveport owns and operates a riverboat casino and hotel complex located on the Red River in Shreveport, La. Black Diamond Capital Management LLC 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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