Windsor Woodmont Black Hawk in default on notes after failing to pay in grace period

New York, Oct. 17 - Windsor Woodmont Black Hawk Resort Corp. said it is in default on its $100 million principal amount 13% first mortgage notes due 2005 and $7.5 million principal amount 15.5% second mortgage notes due 2010 after failing to make the coupon payments due Sept. 15 within the 30-day grace period.

The company said in a filing with the Securities and Exchange Commission that it has not yet received a notice of default from the holders of either series of notes accelerating the debt.

Retaining the cash that would otherwise have been used to make the interest payments is in the best interest of the company, Windsor Woodmont Black Hawk added.

The company said it is currently reviewing potential restructuring and strategic options with its legal counsel Irell & Manella LLP and its financial advisor Alvarez & Marsal, Inc.

Negotiations are also under way with noteholders over a voluntary restructuring of the payment terms of its debt.

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