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Aladdin Moves Closer to Sale

LAS VEGAS --The Aladdin is one step closer to becoming Planet Hollywood by Sheraton after the property's bankers and bosses on Thursday refused to qualify any of the four other groups that made offers to buy the bankrupt resort.

If Judge Clive Jones accepts the decision during a U.S. Bankruptcy Court hearing slated for this morning, Planet Hollywood's $635 million offer for the megaresort would be the winning bid.

But at least two rejected bidders are expected to ask Jones to set the Aladdin decision aside and rule that the scotched bids are qualified. If Jones qualifies another bid, his action would likely result in an auction for the property.

Lawyers for the Aladdin and its bankers and leaseholders filed a status report with the U.S. Bankruptcy Court late Thursday afternoon, advising Jones that none of the four other prospective bidders had submitted an offer that was higher and better than the Planet Hollywood stalking horse bid.

"The parties report that no qualified offer was received as required by (Jones') sales procedure order, and therefore the parties request that the court confirm the selection of (the Planet Hollywood group) as purchaser," the status report noted.

Planet Hollywood Chairman Robert Earl would take an ownership stake in the property along with partners Bay Harbour Management, Starwood Hotels and Resorts Worldwide and Aladdin power supplier Northwind Aladdin. Planet Hollywood has already agreed to license its name and logo as well as provide memorabilia and merchandise.

The Planet Hollywood bid includes $90 million in cash contributed by Starwood, Bay Harbour and Earl, money the group would use to rename, retheme and fix the megaresort. The offer also includes $35 million from Northwind Aladdin.

"Everything's in the hands of the judge, and I think the process has been followed perfectly," Earl said Thursday after the status report was filed. "I look forward to (this morning's) hearing."

The status report listed four groups that Aladdin lawyers noted did not meet the criteria to be a qualified bidder: Barron Gaming LLC; Don Galloway & Associates; Meruelo Group LLC, and Great Casino Co., LLC, better known as the group fronted by Financial Capital Investment Co.'s Richard Alter.

Only the Financial Capital Investment group was listed in the court documents as having submitted the required $12.5 million initial deposit.

Alter was confident Thursday evening that his group's bid would be accepted by the court regardless of the status report filed by the Aladdin.

The Alter-fronted bid would name the property Asia, add an Asian theme and demolish the Aladdin's performing arts theater to make way for a dramatic porte cochere.

The Aladdin's status report noted that the Financial Capital offer didn't exceed the Planet Hollywood offer by $7.5 million as required in the sales procedure approved by Jones. The report also noted additional concerns about the Alter offer.

"No written offer (was) provided by (the) entities posting the deposit," the filing noted.

The Meruelo Group LLC filed its own request in bankruptcy court Thursday afternoon, asking Jones to accept its $510 million all-cash bid despite not having submitted the $12.5 million deposit.

Meruelo lawyer John O'Reilly declined to discuss why the group didn't submit a deposit.

The Meruelo Group would borrow $330 million and would fund the remaining $180 million itself.

The group is family owned and is a big player in California and Florida real estate development, sources said.

The Aladdin's scheduled sales hearing is slated to be held this morning at 9 a.m. at bankruptcy court.

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