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Aladdin Pact Calls for $5 Million Breakup Fee2 May 2003WASHINGTON, DC – As reported by Dow Jones: "Aladdin Gaming LLC is seeking bankruptcy court approval to pay a $5 million breakup fee to the lead bidder for its casino in Las Vegas, as well as to reimburse up to $2.5 million in expenses related to the bid. "Aladdin Gaming has agreed to sell the casino to OpBiz LLC for $6.75 million in cash for unsecured creditors, $510 million in notes, payment of administrative and priority claims, and an investment of $90 million to renovate the property, according to the company's motion seeking approval of the bid protections filed with the U.S. Bankruptcy Court in Las Vegas April 23. "…As reported, OpBiz is a joint venture by investor Robert Earl, Starwood Hotels & Resorts Worldwide Inc. and Bay Harbour Management LC that plans to renovate and re-theme the Aladdin casino as a Planet Hollywood Hotel & Casino and a Sheraton Hotel. "…In its motion with the court, Aladdin Gaming said that its bank lenders and creditor General Electric Capital support the planned sale and the lenders have agreed to provide a credit facility to OpBiz. "…In striking the proposed deal with OpBiz, Aladdin Gaming agreed not to solicit higher offers until the court has entered a sales process order, or for 15 days following April 23, when the purchase agreement was signed…" |