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Greektown expected to lose $15.9 million

6 June 2008

DETROIT, Michigan -- As reported by the Detroit News: "Greektown Casino is expected to lose $15.9 million this year as its bottom line absorbs $13.5 million in bankruptcy restructuring costs and $51 million in loan interest payments, a financial adviser for the troubled gambling facility told a state panel Thursday.

"'Most of this loss is related to the bankruptcy restructuring costs,' Charles Moore of Conway MacKenzie & Dunleavy, a financial consulting firm working on Greektown's reorganization, told members of the Michigan Gaming Control Board. "Significant debt payments are also a factor."

"Moore laid out Greektown's financials at a board meeting called specifically to discuss emergency financing for the casino.

"...Greektown is seeking a total of $150 million in financing. The remainder will come before the bankruptcy court at a later date.

"Greektown also revealed Thursday its terms for a bankruptcy exit, which Moore said would happen 'sometime in 2009.' By Feb. 29, Greektown will have to seek bids for a sale of the completed casino-hotel complex or financing sufficient to exit bankruptcy. Final offers would be due by June 1, Moore said.

"...Greektown's projected 2008 loss comes after a $2 million profit on revenues of $314.6 million in 2007, according to bankruptcy court records. The expected loss won't affect wagering taxes paid to the state of Michigan and city of Detroit, because those are based on revenues, not profits.

"...Also at Thursday's hearing, Moore said a deal with Entertainment Interests Group to buy a 40 percent interest in Greektown may fall through..."

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