Jenner & Block

March 29, 2014 Firm Helps Louisiana's Only Land-Based Casino Emerge from Bankruptcy

The firm played a key role in placing Louisiana’s only land-based casino on solid ground.  The history of the casino dates back to the 1990s, when several developers – Harrah’s, now part of our firm’s client Caesar’s; a prominent real estate developer; and a group of Louisiana investors– conceived of the facility near the foot of Canal Street in New Orleans.  They formed a joint venture, and Harrah’s Jazz Casino opened as a temporary facility in May 1995. Unfortunately, luck was not with the casino, and by that November, it filed for bankruptcy – its first.  As a debtor in bankruptcy, Harrah’s Jazz was represented by a Jenner & Block team that included Dan Murray, Ron Peterson, Larry Wolfson and Tim Chorvat.  The casino subsequently emerged from a Chapter 11 bankruptcy proceeding and reopened on October 28, 1999 under the name of Jazz Casino Co.  According to the New Orleans Times-Picayune, it lost $130 million in its first year of operation and fell short in its obligations to pay creditors.  It filed for bankruptcy again, with a team including Dan, Vince Lazar and Tom Monson representing the debtors. In March 2001, the Louisiana legislature met in special session and agreed to give the casino a number of concessions, among them, cutting its minimum  tax liability from $100 million a year to $50 million the first year and $60 million thereafter.  On this day in 2001, the bankruptcy court in New Orleans confirmed the casino’s plan of reorganization, and the state gambling board officially approved its new contract with the casino as it emerged from its secondbankruptcy.  Harrah’s New Orleans Casino, as it is now called, has remained open ever since – save for a brief period following Hurricane Katrina when the facility served as a command center for the federal government’s rescue operations in New Orleans.

CATEGORIES: 1995-2004, Bankruptcy, Casino, D Murray

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