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Aladdin May Consider Bankruptcy16 August 2001LAS VEGAS, Nevada — As reported by the Las Vegas Review-Journal: “The troubled Aladdin mentioned the possibility of filing for bankruptcy in a report filed late Tuesday with the Securities and Exchange Commission. ”The filing said the $1.3 billion Strip property has reduced its work force by one-third since opening Aug. 18, 2000, from 4,500 employees last year to 3,000 earlier this month. ”The Aladdin's holding company posted a net loss of $20.4 million for the quarter ending June 30, on revenue of $76.8 million. ”…`There is just too much debt,’ said Andrew Zarnett, casino industry debt analyst for Deutsche Banc Alex. Brown. `They have to restructure (the Aladdin's debt).’ ”Zarnett referred to a pending deal between the Aladdin's owners and bankers that would defer about $18 million of the $58 million in principal payments the property owes through June 30, 2002. ”…If the deal isn't made, or if the property owners aren't able to make required payments, a bankruptcy filing could follow…” |