Judge expected to rule on Hollywood Casino Shreveport reorganization Saturday

By Ted A. Knutson

Washington, June 14 - Hearings that started Monday on a motion to ratify Hollywood Casino Shreveport's reorganization plan will continue on Friday and Saturday with a ruling by judge Stephen V. Callaway expected Saturday.

On June 10, the official committee of non-bondholder creditors filed an emergency motion asking the court to allow the latest offer by Black Diamond Capital Management LLC of $169.1 million cash be included in the plan.

The judge is also hearing objections from some creditors that there were discrepancies in voting on the plan.

Currently, Hollywood Casino's plan calls for the sale of the firm to Eldorado, which will make a $5 million contribution as plan sponsor and receive 75% of the equity of the reorganized company with $140 million of new notes being be issued in exchange for Hollywood Casino Shreveport's old notes.

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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