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Additional Filings Detail Harrah's New Orleans Casino's Debt

6 January 2001

NEW ORLEANS. Louisiana -- Jan. 6, 2001 -- As reported by the Associated Press: "Harrah's New Orleans Casino has filed additional documents in bankruptcy court offering more details on the extent of the gambling hall's debt.

"The new filings indicate the downtown casino and its affiliates have $641.7 million in liabilities and $87 million in assets.

"...In Thursday's initial bankruptcy filing, JCC Holding listed assets and liabilities of each corporate entity except Jazz Casino Co. LLC, the entity that owns the gambling hall and conducts most of the company's business.

"...Jazz Casino, the corporate entity that owns the land-based gambling hall, lists $641.7 million in liabilities and $70.8 million in assets.

"The $641.7 million in liabilities includes $549 million owed to banks, creditors and bondholders; $140,733 in unsecured priority claims, which are basic business expenses like wages, benefits and payroll taxes; and plus $93 million in trade payable expenses for things such as food and beverages.

"...Those assets do not include the casino building. JCC Holding owns the casino building, but under the terms of the lease, ownership of the building would revert to the city if the casino closed.

"However, attorneys for both sides say the casino's bondholders and bank lenders would sue for control of the building, and the ownership question would ultimately have to be answered by a bankruptcy court judge..."

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