Legends Gaming seeks plan consummation aid; second-lien lenders object

By Caroline Salls

Pittsburgh, Aug. 27 - Legends Gaming, LLC has asked the U.S. Bankruptcy Court for the Western District of Louisiana to approve some actions necessary to aid in the consummation of the company's confirmed plan of reorganization, according to a court filing.

As previously reported, the plan was confirmed on June 18.

Specifically, the company is seeking court approval to:

• Allow Legends Gaming's first-lien and second-lien lenders to file and/or amend any Uniform Commercial Code financing statements, control agreements, pledge agreements and mortgages needed to perfect their security interests in the company's assets;

• Deem all existing UCC financing statements, control agreements, pledge agreements and mortgages to be in favor of first-lien agent Wilmington Trust Co. as well as newly appointed second-lien agent CIT; and

• Direct Wilmington Trust and CIT to execute the assignments of Preferred Ship Mortgage and record the first-lien assignments with the U.S. Coast Guard National Vessel Documentation Center.

Legends Gaming's consortium of second-lien lenders objected to the aid motion Wednesday, arguing that significant issues remain in connection with the second-lien debt documents.

Specifically, the lender group said the company has set terms in the documents that deviate from the term sheet attached to the confirmed plan and from existing second-lien documents.

As a result, the consortium said the new terms have not been filed with the court.

The lender group said it is still in negotiations with the company to resolve the open issues, but it reserved its right to assert its objections if a resolution cannot be reached.

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.

© 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.