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CAESARS WORLD ANNOUNCES LETTER OF INTENT TO OPERATE PARADISE ISLAND CASINO IN BAHAMAS

 LOS ANGELES, May 12 /PRNewswire/ -- Caesars World Inc. (NYSE: CAW) today announced it has signed a letter of intent with Fidelity Management and Research Co. for Caesars World or a Caesars World subsidiary to become the operator, under a management agreement, of the Paradise Island Resort and Casino and other assets in The Bahamas.
 Funds managed by Fidelity are the major Series Noteholders of Resorts International Inc. Fidelity currently has an agreement in principle which calls for debtholders to ultimately assume ownership of Resorts International's assets in The Bahamas as part of a debt restructuring.
 The letter of intent between Caesars World and Fidelity, which is subject to certain terms and conditions, would give Caesars World 3 percent of the gross revenues from the Bahamas assets plus an incentive fee based on specified performance levels.
 The letter of intent includes, among other items, a purchase option for Caesars World to acquire the Paradise Island properties, and also contemplates financing arrangements by the debtholders for renovation and other capital improvements.
 While further details of the letter of intent are not being released at this time, the companies said the initial term of the management operating agreement would be 10 years with both companies holding options to renew for two additional 10-year terms, subject to certain conditions.
 In addition to the 1,186-room Paradise Island Resort and Casino, the other assets include The Ocean Club Golf & Tennis Resort, the Paradise Beach Resort, Paradise Island Airlines, an airport facility and other property and land in the area. The Paradise Island resort has 30,000-square-feet of casino space.
 The agreement between Caesars World and Fidelity is subject to a number of conditions. These include: both companies completing business and regulatory reviews; the negotiation of a definitive agreement; the receipt of all governmental approvals and the required approvals of the bankruptcy court; execution and delivery of mutually satisfactory documentation; consummation of the proposed plan of reorganization; and other usual and customary conditions.
 -0- 5/12/93
 /CONTACT: Jack Leone of Caesars World, 310-552-2711, ext. 263/
 (CAW)


CO: Caesars World Inc.; Fidelity Management and Research Co.;
 Paradise Island Resort and Casino; Resorts International Inc. ST: California IN: CNO LEI SU: CON


JL-BP -- LA012 -- 7386 05/12/93 08:55 EDT
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Publication:PR Newswire
Date:May 12, 1993
Words:374
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