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Black Hawk Resorts Considers Ditching Partner

18 December 2002

COLORADO – As reported by the Rocky Mountain News: "The financially troubled company that owns Colorado's largest casino is proposing to ditch Hyatt Gaming as a partner and install its own officers as the gaming hall's managers.

"Windsor Woodmont Black Hawk Resort Corp., owner of the Black Hawk Casino by Hyatt and under Chapter 11 bankruptcy, maintains it can operate the $150 million casino more efficiently and that Hyatt is charging exorbitant management fees.

"Windsor Woodmont's bankruptcy counsel said he will file a motion today in Denver's U.S. Bankruptcy Court to sever Hyatt's `virtual total control' of the year-old gaming hall, which features more than 1,200 slot and video games and boasts a Starbucks and Wolfgang Puck Express restaurant.

"Despite casino revenues exceeding $5 million a month, attorney William N. Lobel said the luxury casino in Black Hawk can't cover its operating costs and still make the $1 million monthly interest payments to bondholders owed $107 million in first mortgage notes.

"…`They want to throw us out and give themselves a 15 percent bonus retainer?' [Larry Lewin, a vice president at Chicago-based Hyatt Gaming] said. `We didn't know that was going to happen, especially today at the first creditor's meeting.'

"…Windsor Woodmont filed its bankruptcy reorganization petition Nov. 7, listing $139.4 million in assets and $152.5 million in debt. Next to bondholders represented by SunTrust Bank, Hyatt is the second-largest creditor, owed $10 million.

"The casino is expected to generate more than $60 million in revenues before the end of the year, but Hyatt had projected closer to $90 million, according to documents…"

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