Virasoro Orbits, AdS_3 Quantum Gravity and Entropy

We analyse the canonical structure of AdS_3 gravity in terms of the coadjoint orbits of the Virasoro group. There is one subset of orbits, associated to BTZ black hole solutions, that can be described by a pair of chiral free fields with a background charge. There is also a second subset of orbits, associated to point-particle solutions, that are described by two pairs of chiral free fields obeying a constraint. All these orbits admit K\"ahler quantization and generate a Hilbert space which, despite of having $\Delta_0(\bar{\Delta}_0)=0$, does not provide the right degeneracy to account for the Bekenstein-Hawking entropy due to the breakdown of modular invariance. Therefore, additional degrees of freedom, reestablishing modular invariance, are necessarily required to properly account for the black hole entropy.