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$50 Million Finance Proposal Keeps Aladdin Open18 November 2001LAS VEGAS, Nevada –– As reported by the Associated Press: “A federal judge has approved a $50 million financing plan for the Aladdin designed to keep the megaresort open through the end of next year. ”Bankruptcy Judge Clive Jones had previously OK'd a plan that included a $9 million portion of the loan advanced after Aladdin Gaming's Sept. 28 bankruptcy filing. ”…The 15-month-old Aladdin reported a net loss of $86.2 million on gross revenue of $65.4 million for the quarter ending Sept. 30. ”But Aladdin lawyers said at Friday's court hearing that the $50 million loan will be sufficient to pay employee salaries and other bills through next year because the property is expected to improve during the next 13 months. ”…The Arabian-themed megaresort has suffered from weak foot traffic and poor revenue generation in all areas of its operations, prompting the bankruptcy filing, which allows the Aladdin to remain open while its owners seek a buyer or restructure the megaresort's debt. ”The financing plan's approval followed six weeks of negotiations between Aladdin lawyers and the property's bankers and creditors. ”The Aladdin owes its banks slightly less than $435 million, with the financial institutions holding a deed of trust on the property as collateral. ”…Aladdin bankers were also given the right to acquire 5 percent of the company's publicly traded stock if its share price hits 71 cents…” |