MEMPHIS, Nov. 7, 1995 -- Harrah's Entertainment,
(NYSE: HET) today denied reports circulating on various financial
wires and among the media that Harrah's Jazz Company has retained a
law firm for bankruptcy proceedings.
A spokesman for the Company stated that "While it remains
Harrah's policy not to comment on market rumors, Harrah's Jazz
Company, the Harrah's New Orleans ownership partnership, has no
intent to enter bankruptcy proceedings and has taken no steps,
including retaining any law firm, to pursue this course. In
addition, rumors alleging that Harrah's cannot meet its obligations
under the completion guarantee for the Harrah's New Orleans project
are also false and unfounded." Harrah's Entertainment, Inc. is the
premier name in the casino entertainment industry.
Operating 16 casinos in eight states, Harrah's has more
properties in more jurisdictions than any other casino company in
/CONTACT: Ralph Berry, Harrah's Entertainment, Inc.,
DENVER, Nov. 7, 1995 -- Hemmeter
Enterprises, Inc. (HEI),
a Denver-based casino owner and operator, announced today that HEI
and its Colorado subsidiaries, Bullwhackers Black Hawk, Bullwhackers
Central City and Millsite 27, have filed for reorganization under
Chapter 11 of the Federal Bankruptcy Code.
In its filing today in U.S. Bankruptcy Court in the State of
Delaware, company officials said the filing is part of the company's
previously announced planned restructuring of its existing debt.
The company anticipates filing a Disclosure Statement and Plan of
Reorganization outlining the terms of a restructuring in the very
As part of the reorganization plan, it is contemplated that the
company's senior secured bondholders will extinguish a substantial
amount of their outstanding senior secured notes in return for,
among other things, 90% of the ownership and new secured notes of
the reorganized entity. The remaining 10% ownership will be made
available to management through an incentives program.
"Although the filing includes the parent company and our
successful Bullwhackers subsidiaries, there will be no effect on the
day-to-day operations of our Colorado casinos," said Stephen J.
Szapor, Jr., the recently appointed president and CEO of HEI.
"The filing is necessary to effectuate the proposed
reorganization of the parent company's bond indebtedness. For
customers, vendors and employees of the Bullwhackers subsidiaries,
it will be business as usual and Bullwhackers will continue to pay
its trade creditors on an ongoing basis in the ordinary course of
business," said Szapor. "In fact, we are proceeding with our
recently announced expansion plans to purchase the Silver Hawk
Casino in Black Hawk and we will proceed on the development of our
proposed parking garage."
Szapor also said, "Our Colorado operations remain healthy. The
company's management team and the company's bondholders are excited
about the future growth of our operations. Additionally, we have
entered into a new loan and security agreement with Foothill Capital
Corporation, which will provide us with the financing necessary to
fund the Silver Hawk acquisition and for working capital purposes."
"We are extremely pleased to have reached an agreement with a
financial institution such as Foothill. We believe their commitment
to provide the Bullwhackers operations with this financing shows
their support for, and confidence in, both the Bullwhackers
operations and the Colorado gaming industry. This financing is
another important step in the development of the previously
announced expansion project for our Bullwhackers," said Szapor.
Foothill Capital Corporation is a major financial institution
based in Los Angeles. Foothill recently announced it has been
acquired by Norwest Bank which has a substantial presence in
/CONTACT: Z. James Czupor of The InterPro Group, 303-871-8909; or
Stephen J. Szapor of Hemmeter Enterprises, 303-863-2400/
NEW YORK--Nov. 7, 1995--Rockefeller Center
Properties, Inc. ("RCPI") today announced that it has signed a
definitive merger agreement with an investor group including Exor
Group S.A., David Rockefeller, an affiliate of Tishman Speyer
Properties, Inc., Troutlet Investments Corporation and Whitehall
Street Real Estate Partnership V (the "Investor Group"), under which
shareholders of RCPI would receive $8.00 cash per share of common
stock in exchange for their RCPI shares. As part of the
transaction, the Investor Group also will assume all of RCPI's
outstanding liabilities and provide up to $45 million in short-term
RCPI also announced that it today terminated its agreement with
Equity Office Holdings, L.L.C.
The Company said that the agreement with the Investor Group
should form the basis for an amendment to the plan of reorganization
that the current owners of Rockefeller
Center filed earlier today
with the Bankruptcy Court.
"This agreement, reached after months of negotiations with a
variety of potential investors, maximizes value for shareholders,"
said Dr. Peter D. Linneman, Chairman of the Board of RCPI. "The
$8.00 per share cash price to be received by RCPI shareholders is
approximately twice the price of the stock last May when the
Debtor's bankruptcy commenced and we began seeking financial
partners who would help us unlock value for the RCPI shareholders."
A spokesman for the Investor Group said: "This agreement will
preserve the great tradition of Rockefeller Center for tenants and
for the greater New York community. It assures operational
expertise together with a financially sound foundation for this
landmark property. We believe this agreement serves the best
interests of shareholders, tenants, and the New York community. We
are pleased the RCPI board of directors supports our commitment to
the future of Rockefeller Center."
RCPI also announced that it had entered into an agreement with
this Investor Group pursuant to which, if the RCPI shareholders do
not approve the merger, Goldman, Sachs & Co. and Whitehall would,
if requested by RCPI, cooperate in a $200 million rights offering to
RCPI shareholders at a price of not less than $6.00 per share.
The consummation of the transaction contemplated by the merger
agreement is subject to a number of conditions, including the
approval of RCPI shareholders. There can be no assurance that these
conditions will be satisfied. RCPI is a mortgage real estate
investment trust whose principal asset is a $1.3 billion
participating convertible mortgage loan on Rockefeller Center.
Rockefeller Center is a 12-building landmark office and retail
complex in the heart of midtown Manhattan with 6.2 million square
feet of net rentable space. The current owners of Rockefeller
Center, two partnerships controlled by Mitsubishi Estate Company,
Ltd. and Rockefeller family interests, filed for protection under
Chapter 11 on May 11, 1995.
RCPI is listed on the New York Stock Exchange as "RCP." As of
November 6, 1995, there are 38,260,704 shares of common stock
Stephanie Leggett Young, (212) 698-1440
Andrea Bergofin or Adam Weiner