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Greektown Casino falls into Chapter 11 bankruptcy

30 May 2008

DETROIT, Michigan -- As reported by the Detroit Free Press: "Greektown Casino has asked a federal court for approval to reorganize its finances and continue business operations under the protection of Chapter 11 of the U.S. Bankruptcy Code, the Sault Ste. Marie Tribe of Chippewa Indians announced today.

"...Greektown Holdings L.L.C., along with seven other related entities, filed Chapter 11 bankruptcy petitions with U.S. Bankruptcy Court in Detroit Thursday, saying it is unable to borrow more money and has hit massive cost overruns as it attempted to expand its Detroit casino.

"'Significant delays and cost overruns in connection with the completion of the expanded complex have adversely affected Holdings' businesses, Greektown Casino's operations and Holdings' financial condition and cash flow,' Greektown said in its bankruptcy filing.

"Greektown said it estimates that it needs approximately $140 million of additional borrowings or equity contributions to complete the expansion.

"Failure to complete the expansion, Greektown said, would result in a default of its development agreement, and would hinder Greektown Casino's ability to compete.

"Greektown, in its court documents, said it was forced to file for Chapter 11 bankruptcy because it is out of compliance with the terms of its line of credit with Merrill Lynch Pierce Fenner and Smith..."

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