We show that an SL(2, R)(L) x SL(2. R)(R) Chern-Simons theory coupled to a
source on a manifold with the topology of a disk correctly describes the en
tropy of the AdS(3) black hole. The resulting boundary WZNW theory leads to
two copies of a twisted affine Kac-Moody algebra, for which the respective
Virasoro algebras have the same central charge c as the corresponding untw
isted theory. But the eigenvalues of the respective L-0 operators are shift
ed. We show that the asymptotic density of states For this theory is, up to
logarithmic corrections, the same as that obtained by Strominger using the
asymptotic symmetry of Brown and Henneaux. (C) 2001 Published by Elsevier
Science B.V.