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Detroit says Greektown in default

DETROIT, Michigan -- As reported by The Detroit News: "The city wants to negotiate a new deal with any new owner of Greektown Casino, a city attorney told a federal bankruptcy judge Tuesday.

"Detroit does not want the casino to keep, and potentially transfer, its development and operating agreement to a buyer.

"Furthermore, attorney Allan Slagel argued, Greektown Casino has defaulted on some of the contract terms. He said it has failed to build a theater; pay the city $663,000 in development costs; and never offered a public share offering to Detroit residents.

"Companies, like Greektown, that are trying to emerge from bankruptcy generally can 'assume' or 'reject' existing contracts. The city is fighting in U.S. Bankruptcy Court Greektown's efforts to "assume" its development agreement with the city..."

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