New Plan Has Greektown Casino Emerging From Bankruptcy In 2010

The Greektown Casino is just one of many casinos that had to choose the option of bankruptcy during the economic recession. There is now a plan in place, however, that would have the casino emerge from bankruptcy at the end of June next nest.

Creditors signed off on the plan on Thursday and now there will be a series of meetings that will determine the future of the casino. Confirmation hearings for the new plan will begin on January 12th, and by January 31st, there is expected to be a confirmation.

One of the main hold-up was bondholders insistence that they be kept in on future earnings at Greektown. Under this plan, bondholders would receive six percent in common stock of Greektown. The bondholders would also have the rights to 4185 million in preferred stock, which corresponds with the amount owed the bondholders currently.

The other ninety-four percent of the casino would be owned by several different groups. Oppenheimer Funds Inc., MFC Global Investment Management LLC, Brigade Capital Management and Sola Ltd would be those owners.

"It has been a very lengthy negotiating process, but it is being done," said Chuck Moore, a turnaround expert for the Greektown estate, "All parties are aiming toward the same goal, which is to speed the casino's exit from bankruptcy."

Greektown is one of the many casinos that has faced difficult economic challenges over the past couple of years. Casinos in Atlantic City and Las Vegas, two of the biggest gambling destinations in the US, have also explored the bankruptcy protection option.

November 20, 2009
Posted By Susan Torres
Staff Editor, CasinoGamblingWeb.com
Submit News!