Casino owner again asks for more time

Tuesday, Feb. 18, 1997 | 11:59 a.m.

In a motion filed in federal bankruptcy court, Harrah's Jazz Co. wants extended from Feb. 28 until April 30 the deadline for coming up with an exclusive plan to revive the idle casino.

Harrah's Jazz already has received several delays from the court while it dealt with creditors, the city of New Orleans and the state over terms for finishing and opening its permanent casino across from the French Quarter.

The company's temporary casino closed in November 1995 after operating for less than seven months and garnering only a third of its projected revenue. Harrah's Jazz has since been in bankruptcy court protection.

Last month, the company's attorneys told U.S. District Judge T.M. Brahney III that it was nearly finished with a new agreement with the state that included a guarantee of its $100 million annual tax payment should the casino close again.

After the hearing, Robert Rosenberg, an attorney for Harrah's Entertainment Inc., the casino's primary partner, said Harrah's Jazz wants the state to agree not to allow dockside riverboat gambling in the New Orleans area.

In its latest motion, Harrah's Jazz says that because of the lengthy negotiation with the state, it will not be possible for creditors to vote on a reorganization plan before its current "period of exclusivity" expires on Feb. 28.

If Brahney refuses to extend the period, other companies could bid for the casino contract.

Ralph Berry, a spokesman for Harrah's Entertainment, could not be reached for comment Tuesday. In its motion, Harrah's Jazz said it should receive an extension because "of the substantial progress made to date."

In court last month, Harrah's Jazz attorney William Patrick said the revised agreement would have to be approved by the Louisiana Gaming Control Board and the governor. Gov. Mike Foster has said it is likely the Legislature will be asked to ratify the contract.

Recently, Foster scuttled his plans for a special legislative session this month. The regular lawmaking session begins in late March.

Last month, Rosenberg said it was unlikely that the casino could open before 1997.