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Greektown emergency financing approved

"Greektown Casino will use $44.9 million of the loan to pay the past-due bills of contractors building its expanded gaming floor and 400-room resort-style hotel, and $6.4 million to pay fees owed to its primary lender. Greektown attorneys told U.S. Bankruptcy Court Judge Walter Shapero that without the money the $332 million permanent casino-hotel project would grind to a halt.

"Shapero on Wednesday approved the emergency financing on the condition that interested parties, including the gaming board, sign off on the loan package. Greektown spokesman Roger Martin confirmed Wednesday that all of the signatures required for the financing's approval had been obtained.

"...Also good news for the casino was the judge's order that contractors and subcontractors provide written promises to stay on the job until the project is completed.

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"...Still, after the bankruptcy filing, several contractors and subcontractors had walked away from the job, as fears grew that Greektown would never be able to pay the past-due bills for the construction crews' work. In arguing for the emergency financing, lawyers for Greektown told Shapero that more construction companies were threatening to abandon the project if financing wasn't in place by Friday..."

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