Louisiana Riverboat Gaming Partnership

The court confirmed a plan for Louisiana Riverboat Gaming Partnership and five affiliates after an 11-month Chapter 11 that began on July 31, 2012 with the DiamondJacks hotel and casino businesses in Bossier City, Louisiana and Vicksburg, Mississippi. The cases opened after defaults under first- and second-lien credit agreements, with the debtors initially pursuing a sale of substantially all assets to Global Gaming Solutions and affiliates under a purchase agreement carrying a $27.5 million cash purchase price, subject to adjustments source filing.

By the final plan, the case had shifted into a lender-driven reorganization. The disclosure statement put first-lien claims at $181.2 million and second-lien claims at $116.3 million; the confirmed plan gave first-lien lenders an amended credit facility, retained liens, residual estate value, and an option for 100% of new interests, while second-lien lenders received no secured recovery and general unsecured creditors shared only $40,000 if Class 8 accepted source filing source filing. The June 27 order overruled confirmation objections, vested assets in the reorganized debtors, set administrative and rejection-claim deadlines, preserved Global Gaming litigation, and excluded Global Gaming from releases source filing.