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Judge Questions Illinois Casino Deal

ILLINOIS – As reported by the (Chicago) Daily Herald: "A federal bankruptcy judge expressed skepticism Tuesday over an agreement to free up the state's 10th casino license that does not have the village of Rosemont on board.

"Judge Eugene R. Wedoff's doubts came despite previous assurances by Illinois Attorney General Lisa Madigan that Rosemont's approval is not needed to push through the plan.

"…[ Joseph Schorer, an attorney for Emerald Casino] said he believes even without Rosemont's approval, Emerald and the state can get the plan approved.

"`If you can do that, it will be quite impressive,' said Wedoff.

"…Under federal bankruptcy law, two-thirds of each class of creditor must agree to the deal. If Rosemont doesn't agree, there is a `cram down' provision that Wedoff could approve regardless of Rosemont's objection.

"However, under that provision, Wedoff `must determine, among other things, that the plan does not discriminate unfairly and that it is fair and equitable with respect to each class,' according to a court filing in the case. Rosemont may be able to successfully argue that the plan, which guarantees it nothing at worst and $45 million at best, discriminates unfairly against the village.

"Rosemont has said it is owed at least $45 million for a parking garage it built for a casino, and it is also making a case for upward of $100 million for lost revenues due to the casino not opening.

"Lisa Madigan has said that if a judge determines Rosemont is owed more than $45 million, she will walk away from the deal altogether…"

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