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HCS previously reported that it has been in default of its outstanding secured notes under the terms of its related note indentures since March 2003 bellagio hotel casino. The Company entered into negotiations with an ad hoc committee of noteholders (the "Committee") regarding a possible restructuring of its outstanding indebtedness. In February 2004, HCS commenced a broad, competitive process to explore proposals for the sale or merger of the Company in order to reduce indebtedness, infuse new equity capital and maximize value for creditors. The Agreement is the result of an exhaustive process, conducted in collaboration with the Committee and supported by both the Company and the Committee. Libra Securities LLC acted as financial advisor to the Company in the sale process.

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Under terms of the agreement and subject to customary approvals, Colony will purchase the assets of the four properties and assume certain bellagio hotel casino related current liabilities. One of the few private investment firms licensed in gaming, Colony owns Resorts International in Atlantic City and the Las Vegas Hilton. Colony also is a partner in Accor Casinos in Europe.
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Under terms of the agreement, Caesars shareholders will receive an aggregate of $1.8 billion in cash and 66.3 million shares of Harrah’s Entertainment common stock bellagio hotel casino. Caesars shareholders will be able to elect to receive solely shares of Harrah’s common stock or cash, to the extent available.
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The concerts will take place in a multi-purpose space adjacent to the casino, and negotiations are underway with several more performers bellagio hotel casino to bring shows there. The 5,600-seat Hard Rock Live venue will open later this year as part of the adjacent Seminole Paradise retail complex, where dozens of shops, restaurants and nightclubs will be available.
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