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Aladdin Lowers its Financial Backstop16 August 2002LAS VEGAS – As reported by the Dow Jones: "Aladdin Gaming LLC is seeking court authorization to extend its debtor-in-possession financing facility through Dec. 31, and to halve the commitment amount to $25 million from $50 million because business has been stronger than expected. "The amended DIP facility would give it a `safety net' through the end of the year at a minimal cost as it seeks to improve operations and continues to try to sell its casino and hotel resort in Las Vegas, the company said in court papers. "There were no amounts outstanding under the DIP agreement as of July 25. The U.S. Bankruptcy Court in Las Vegas on Dec. 4, 2001, approved the $50 million DIP agreement with a group of lenders led by Bank of Nova Scotia. "As well as extending the DIP loan and cutting the amount in half, the proposed amendment reduces the unused availability fee payable to the lenders from 1.5 percent to 1 percent per year, retroactive to July 11. "…The court recently granted the company's request for a two-month extension of its exclusive periods for filing a Chapter 11 reorganization plan and soliciting plan votes. "…The company has been on a dual track during its bankruptcy proceeding -- exploring a sale of its assets while trying to draft a stand-alone reorganization plan…" |