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EXHIBIT 99.01
[STATE OF LOUISIANA GAMING CONTROL BOARD LETTERHEAD]
September 27, 2000
Jazz Casino Company, LLC VIA CERTIFIED MAIL NO. 7099 3400 0007 1972 8523
One Canal Place RETURN RECEIPT REQUESTED
365 Canal Street, Suite 900
New Orleans, Louisiana 70130
Jazz Casino Company, LLC VIA CERTIFIED MAIL NO. 7099 3400 0007 1972 8554
512 South Peters RETURN RECEIPT REQUESTED
New Orleans, Louisiana 70130
ATTENTION: FREDERICK W. BURFORD, PRESIDENT AND CEO
Harrah's New Orleans Management VIA CERTIFIED MAIL NO. 7099 3400 0007 1972 8486
Company RETURN RECEIPT REQUESTED
1023 Cherry Road
Memphis, Tennessee 38117
ATTENTION: PRESIDENT
Re: Notice of default under Sec. 9.5 of the Amended and Renegotiated Casino
Operating Contract ("COC")
Dear Mr. Burford:
This letter is to formally advise you that the Louisiana Gaming Control
Board ("Board") has found, evidenced in the September 19, 2000 Resolution
attached, that Jazz Casino Company, L.L.C. ("JCC") is in default of Section
9.5(c) of the COC, relative to performance and payment of debt obligations.
Specifically, the Board found that JCC has failed to demonstrate by clear
and convincing evidence that JCC has the continuing ability to pay exchange,
refinance or extend its debt that will mature or otherwise become due and
payable during the twelve month period commencing on July 1, 2000. This
decision is based upon the statements contained in quarterly financial
stability certification filed with this Board on July 24, 2000 as well as an
investigation completed by the Louisiana State Police and Louisiana Attorney
General's Office and subsequently reported to the Board.
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Jazz Casino Company, LLC
September 27, 2000
Page 2
In accordance with Section 9.5(e) of the COC, JCC is hereby notified
that, unless the COC is terminated earlier, JCC has six (6) months after receipt
of this Notice to cure the default relative to Section 9.5(c). The Board, hereby
reserves any and all other rights under the COC and under its general regulatory
authority, including particularly the rights granted in Section 9.5(e) of the
COC, to take any further action it deems necessary to enforce terms of the COC.
Thank you for your attention to this matter.
Sincerely yours,
/s/ HILLARY J. CRAIN
Hillary J. Crain
Chairman, Louisiana Gaming Control Board
HJC:WJQ:jll
Enclosure
cc: Constance A. Koury, First Assistant Attorney General
E. Kay Kirkpatrick, Deputy Attorney General
William J. Quinlan, Jr., Director, Gaming Division
Lt. George H. "C-Bo" Dean, Supervisor, Louisiana State
Police--Landbased Casino Division
Charlotte McGarr, Audit Manager, Louisiana State Police--Landbased
Casino Division
John S. Campbell, Jr., Esq.
A. Michael Dufilho, Esq.
Basile J. Uddo, Esq.
David J. Satz, Esq.
