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Hollywood Casino Shreveport involuntary Chapter 11 hearing set for Oct. 29
By Jeff Pines
Washington, Oct. 12 - Hollywood Casino Shreveport's hearing over an involuntary Chapter 11 petition is scheduled for Oct. 29. Hollywood Casino Shreveport has asked the court to deny the petition.
The order scheduling the hearing was filed Tuesday with the U.S. Bankruptcy Court for the Western District of Louisiana.
Black Diamond Capital Management LLC and two other creditors filed to have the company thrown into bankruptcy. But Hollywood Casino said in fact one of the other two creditors is ineligible because it is already involved in litigation with that creditor.
Hollywood Casino Shreveport, a gaming company with operations in Shreveport, La., alleges Black Diamond Capital wants the company in Chapter 11 because Black Diamond lost an auction and then claimed the auction was unfair.
Black Diamond said the company's decision to select Reno, Nev.-based Eldorado Resorts LLC to acquire it unfairly favors two Eldorado creditors, TCW and American International Group Inc. AIG also is the largest holder of Hollywood Casino Shreveport notes, Black Diamond said.
Black Diamond holds more than $28 million in Hollywood Casino Shreveport mortgage notes. It said the gaming company ignored its proposals.
Eldorado's proposal calls for Hollywood Casino secured noteholders to exchange their $189 million of notes for $140 million of new first mortgage notes, $20 million of pay-in-kind preferred equity securities, a 25% non-voting equity interest in the reorganized company and a cash amount to be determined.
The involuntary petition was filed on Sept. 10. The Chapter 11 case number is 04-13259.
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