SEARCH NEWS:

 

Sources: Aladdin Motive of Exec's Move

LAS VEGAS -- A personnel move at Green Valley Ranch is a strong sign of a bidder's imminent plans to buy the bankrupt Aladdin, sources said Tuesday.

Sources said the resignation of Michael Mecca, manager of the Station Casinos and Greenspun family-owned Green Valley Ranch, clears the way for him to take the general manager's position for a company that's shaping up as the front-runner to buy the bankrupt Aladdin.

Mecca resigned Friday but is expected to continue managing the property through mid-May, a Station Casinos executive said.

Sources said Mecca already has a deal with the prospective bidder, a group that includes Planet Hollywood and Starwood Hotels and Resorts Worldwide.

"Mike Mecca walked in last Friday and tendered his resignation," Station Casinos Chief Operating Officer Steve Cavallaro said Tuesday. "He said there were several opportunities he was considering, including one on the Strip and another out of the market."

Mecca confirmed he resigned from Station Casinos and accepted a new position but declined to identify it, citing confidentiality concerns.

"I told (top Station Casinos and Greenspun family executives) that I'm so thankful for the opportunity they gave me at Green Valley Ranch, and I'm proud of all we've accomplished here," Mecca said.

Deutsche Banc Securities debt analyst Andrew Zarnett said that Mecca's hiring signals the seriousness of a potential Aladdin bid.

"It's a sign of the bid's credibility if they've hired Mecca," said Zarnett, who called the Green Valley Ranch boss a first-class operator. "The fact they're keeping him on (at Green Valley Ranch) shows what they think of him. With a lot of companies, the minute you submit your resignation they walk you to the door."

Mecca's been the top executive at Green Valley Ranch since April 2001; the property opened in December 2001.

The Planet Hollywood and Starwood bid is expected to be named the Aladdin's preferred, or "stalking horse," bidder in a bankruptcy court-supervised auction process. The Aladdin bankers could pick the stalking horse as early as this week, sources said.

Sources said the expected stalking horse bid would not include an offer to buy the separately owned Desert Passage mall.

The Aladdin owes its secured creditors about $540.3 million, including about $70 million for slot loans and leased equipment. The megaresort owes an additional $85.2 million to unsecured creditors and $2.6 million in priority tax claims.

< Gaming News