Hollywood Casino Shreveport agrees to relief in Chapter 11

By Jeff Pines

Washington, Nov. 2 - Hollywood Casino Shreveport agreed to a consent order for relief in its involuntary Chapter 11 case, the company's managing general partner, HCS I, said.

Hollywood Casino Shreveport obtained a series of orders from the court designed to minimize any disruption of business operations and to facilitate the reorganization. The company expects the filing to have minimal impact on its day-to-day operations and believes that its significant cash on hand will continue to be sufficient to timely fulfill obligations to employees, customers and trade vendors in full as they come due.

The company filed a joint plan of reorganization and a disclosure statement on Thursday. It hopes to obtain approval of its disclosure statement and begin the solicitation of acceptances of its plan by the end of the year.

Hollywood Casino Shreveport owns and operates a riverboat casino/hotel complex located on the Red River in Shreveport, La.

The consent order filed with the U.S. Bankruptcy Court for the Western District of Louisiana on Saturday makes Hollywood Casino Shreveport a debtor-in-possession.

The order did, however, approve the appointment of an examiner to investigate Hollywood Casino Shreveport's pre-petition bid process, to determine the value of the bids and whether the process was fair.

Black Diamond Capital Management contends its bid was superior to Eldorado Resorts LLC's bid for Hollywood Casino Shreveport's assets.

In addition, the order authorized a non-bondholder unsecured creditors' committee.

Orders concerning cash management and authority to pay employees, among others, were also filed Saturday.

A group of creditors filed an involuntary Chapter 11 case against the casino and resort company on Sept. 10. The Chapter 11 case number is 04-13259.

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