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Aladdin, Utility Reach Settlement13 December 2002LAS VEGAS – As reported by the Associated Press: "A federal bankruptcy judge has approved a settlement involving the Aladdin resort and the Northwind utility plant that should help clear the way for a future sale of the hotel-casino, court records show. "A lawsuit between the two brought into question who owned the $40 million plant, which is on Aladdin property. The Northwind Aladdin company has a 20-year lease to supply the casino with water. "The deal keeps the Northwind plant in business and ensures it will continue to provide hot and cold water to Aladdin customers and serve as an emergency generator. The plant also pipes cold water to the Desert Passage Mall that adjoins the casino. "…The settlement calls for the casino to slash by half its equity payments to Northwind. The Aladdin also agreed to pay Northwind about $2.5 million, most of which will paid immediately. "Reducing the payments will save the casino about $12 million over the next 17 years, Aladdin lawyer William Noall said. "…The complex lawsuit could have cost Aladdin and Northwind hundreds of thousands of dollars if it had gone to trial. With Aladdin in bankruptcy and Northwind teetering on it, saving money was critical to both companies. "Also, a lengthy fight in court might have delayed a possible sale of the bankrupt Aladdin. Noall made clear in court filings that resolving the lawsuit was vital. "…The Aladdin, which opened in August 2000, filed for Chapter 11 bankruptcy after little more than a year and has been seeking buyers since then." |