Hollywood Casino Shreveport creditors, committee object to disclosure statement

By Caroline Salls

Pittsburgh, May 31 - Hollywood Casino Shreveport's proposed disclosure statement related to the company's plan of reorganization drew multiple objections stemming from treatment of non-bondholder creditors, according to Friday filings with the U.S. Bankruptcy Court for the Western District of Louisiana.

The official committee of non-bondholder creditors, creditors Black Diamond Capital Management, LLC and Broadmoor/Roy Anderson Corp. and complex architect Broadmoor LLC said the plan should not be confirmed because it improperly classifies non-bondholder creditors into separate classes and does not maximize value for creditors.

The objections said the plan is discriminatory because it pays some non-bondholders in full while giving others only 33% recovery.

The city of Shreveport and the Louisiana Revenue Department, as well as 16 Hollywood Casino Shreveport employees have also objected to the disclosure statement in recent weeks.

A plan confirmation hearing is scheduled for June 13.

Hollywood Casino Shreveport owns and operates a riverboat casino and hotel complex located on the Red River in Shreveport, La. Black Diamond and other creditors filed an involuntary bankruptcy case against the casino and resort company on Sept. 10, 2004. The Chapter 11 case number is 04-13259.

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