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Aladdin Seeks Sale Despite Opposition9 April 2002LAS VEGAS – As reported by the Las Vegas Review-Journal: "Lawyers for the bankrupt Aladdin are expected to ask a federal judge today to let the property proceed with plans to sell the Strip resort despite opposition from creditors. "According to a declaration filed by Thomas Lettero, treasurer of Aladdin Gaming LLC, the hotel-casino needs to be sold in order to satisfy $410 million in bank loans on the property. "The Aladdin's plan to sell the property, however, is opposed by several of the resort's creditors. "`This dictate is simple: one cannot sell what one does not own,' wrote Candace Carlyon, local counsel for General Electric Capital, in her opposition to the proposed sale. "Carlyon noted that the Aladdin borrowed $20 million from General Electric Capital to buy gaming equipment and leased some $60 million worth of furniture and other fixtures from the company. Because the Aladdin still owes it money, General Electric Capital doesn't want the casino to dispose of any collateral. "…Although sources say contractors are still owed between $50 million and $55 million for their work on both the Aladdin and Desert Passage, collecting it may be challenging with or without a sale…" |