Legends Gaming first-lien lenders seek reconsideration, clarification of plan confirmation ruling

By Caroline Salls

Pittsburgh, June 29 - Legends Gaming LLC's second-lien lenders have asked the U.S. Bankruptcy Court for the Western District of Louisiana to reconsider and clarify its order confirming the company's plan of reorganization, according to a Friday court filing.

As previously reported, the plan was confirmed on June 7.

The lenders said they are willing to forego their right to appeal the plan confirmation ruling if the court agrees to reconsider and clarify the order, which will save the company tens or hundreds of thousands of dollars in professional fees and allow it to exit bankruptcy as soon as possible.

Specifically, the lenders said they are asking the court to rule:

• That they are entitled to payment of about $2.5 million in professional fees and expenses;

• That their claims and fees should be allowed in full;

• That they are entitled to a 15% rate on all payment-in-kind interest on the company's term loan A;

• That all alleged and potential claims and causes of action against Jefferies & Co. Inc. should be waived; and

• That the company's restated first-lien credit agreement should not restrict the transfer of first-lien debt to Legends' second-lien lenders.

Frankfort, Ill.-based Legends Gaming owns and operates two gaming properties under the DiamondJacks Casino brand. The company filed for bankruptcy on March 11, 2008. The Chapter 11 case number is 08-10824.

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