Hollywood Casino Shreveport objects to involuntary petition

By Jeff Pines

Washington, Oct. 5 - Hollywood Casino Shreveport asked the U.S. Bankruptcy Court for the Western District of Louisiana to dismiss an involuntary Chapter 11 petition.

The Chapter 11 case was filed by Black Diamond Capital Management LLC, which has claims via its BDCM Opportunity Fund LP and its Black Diamond CLO 2000-1 Ltd., along with Wilhite Electric Co., Inc. of Bossier City, La., and Broadmoor/Roy Anderson Corp. of New Orleans, La.

Hollywood Casino filed its response with the court Tuesday.

The company believes the petition was filed in bad faith and that the interests of the creditors and the company would be "better served" by dismissing or suspending the petition.

Another reason for dismissing the petition, Hollywood Casino said, is that there are too few petitioners. Wilhite Electric cannot be a petitioning creditor because it already has a lawsuit over its claim pending.

In addition, Black Diamond Capital Management LLC's BDCM Opportunity Funds LP and Black Diamond CLO 2000-1 Ltd. is really one petitioner rather than two, Hollywood said.

Hollywood Casino Shreveport has already obtained an agreement to sell Hollywood to Eldorado Resorts LLC. Hollywood was expected to file for Chapter 11 later this year and then the sale would be subject to bankruptcy court approval as contemplated by the agreement.

The petition was filed Sept. 10. The company's Chapter 11 case number is 04-13259.

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