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Lawyers: Aladdin in No Rush to Sell

LAS VEGAS, Nevada – As reported by the Las Vegas Review-Journal: “Aladdin financial advisers are allowing financial markets to decide if and when the bankrupt megaresort should be sold, unsecured creditors' lawyer Frank Merola said after a Tuesday hearing in U.S. Bankruptcy Court.

"The property is making money, so the debtor can afford to let the market decide the timeline," said Merola, whose clients are owed $85.7 million by the $1.05 billion property.

Property lawyers told Bankruptcy Judge Clive Jones that they were working with creditors to establish a sales procedure. Jones scheduled the property's next status hearing for June 25.

Meanwhile, Aladdin financial adviser KPMG has established a due diligence room at the Aladdin, a place where potential buyers or investors can research the property's financial information.

Merola, citing a confidentiality agreement, said he was unable to say how many bidders, if any, were researching the Aladdin's finances.

Atlantic City casino operator Colony Capital submitted a March bid of about $350 million for the 2,567-room property, the Review-Journal reported.

Aladdin Chief Financial Officer Tom Lettero's most recent monthly financial status summary filed with the court reported $21.8 million in April revenue, down from $25.5 million in March.

That decline was more than offset by a reduction in expenses, which dropped to $14.7 million from $22.1 million.

The property reported net profit of $2.7 million in April after reporting a $1.1 million loss in March.

Aladdin executives filed for bankruptcy protection in September after property executives said they were unable to continue paying the property's debt.

The Aladdin owes secured creditors $542.5 million, including about $435 million to a bank group led by the Bank of Nova Scotia and $70 million to companies leasing equipment and providing slot machine loans.

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