Majestic Star Casino: Bankruptcy court confirms reorganization plan

By Lisa Kerner

Charlotte, N.C., March 10 - Majestic Star Casino, LLC received court confirmation of its second amended joint plan of reorganization on Thursday, according to a filing with the U.S Bankruptcy Court for the District of Delaware.

As previously reported, cash distributions will be funded by the company's cash balances and/or cash from business operations.

Under the plan:

• The Majestic Star debtors will retain and reorganize around their casino gaming properties in Gary, Ind., Tunica, Miss., and Black Hawk, Colo., subject, in the case of the Black Hawk, Colo., gaming property, to obtaining all governmental licenses, suitability determinations and other required approvals within 240 days following the plan confirmation date;

• Holders of senior secured credit facility claims will either receive a share of a new senior secured credit facility paydown amount and a new senior secured credit facility if no first-lien alternative financing is completed or cash proceeds from new first-lien financing if it is completed;

• Holders of senior secured notes indenture claims will receive 58% of new membership interests and either a share of new senior secured notes if no second-lien alternative financing is completed or $100.6 million in cash if it is;

• Holders of senior notes indenture claims will receive a share of 42% of the membership interests;

• Holders of general unsecured claims and rejection damages claims will receive the lesser of cash equal to 25% of their claim or a share of $1 million; and

• Holders of discount notes indenture claims and equity interests will receive no distribution.

Majestic Star, a Las Vegas-based owner and operator of casino hotels, filed for bankruptcy on Nov. 23, 2009. Its Chapter 11 case number is 09-14136.

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