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EXHIBIT 10.55
[HARRAH'S LETTERHEAD]
August 3, 2000
Frederick W. Burford
JCC Holding Company
One Canal Place
365 Canal Street
Suite 900
New Orleans, LA 70130
Re: Forbearance
Dear Fred:
As a follow up to my letter of July 24, 2000, I reiterate the desire of
Harrah's Entertainment, Inc., Harrah's Operating Company and Harrah's New
Orleans Management Company to work with JCC Holding Company and Jazz Casino
Company LLC to find a long-term financial solution for their financial
situation.
To this end we agree to forbear until December 31, 2000 from collection
of any and all amounts which were deferred under the Limited Forbearance
Agreement through July 31, 2000. Furthermore, we will also forbear until
December 31, 2000 on collection of the Rent (as defined in the Limited
Forbearance Agreement dated as of February 29, 2000) which comes due for the
period from August 1, 2000 through December 31, 2000. These forbearances are
made on the terms and conditions set forth in the Limited Forbearance Agreement.
However, we will not continue to forbear with respect to the
Reimbursables and Service Fees (both as defined in the Limited Forbearance
Agreement) from and after August 1, 2000. These amounts are senior to the
secured debt under the bank and bond documents and need to be paid currently
just as JCC is paying its other creditors as amounts come due.
This letter supersedes my July 24 letter. Please contact me if you have
any questions.
Very truly yours,
/s/ CHARLES L. ATWOOD
Charles L. Atwood
