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Bankruptcy Jury Sentenced Greektown Casino With Loan Approval

by Jack Reider
( February 5 2009 12:9:46 )
A US based bankruptcy jury sentenced a Greektown Casino with the loan approval to borrow the funds it requires to complete its new 400-room hotel.

A $22.5 million dollar loan has been authorized by Judge Walter Shapero, the loan, which the Downtown casino owners stated is required to keep its general contractor continuing on the construction proceeds is half of the $45 million dollar bill for the construction.


The hotel is counted on to re-open on Thursday.  Creditors did not gather interest at the cost of the financing; however, they finally settled down on the deal.


Greektown should be paying the lender nearly $7.5 million in fees and they will have to agree on an interest-rate increase on its existing monetary package of $150 million.


“The lenders committee estimates the completion of this project as necessary to any kind of recovery,” stated Joel Applebaum, a Clark Hill based attorney who is talking for the unsecured creditors, who did not agree to deal initially.
Greektown casino requested and filed for bankruptcy protection in the year May 2008.


The expansion proceeds at the casino was estimated to cost more than $550 million, however, the Greektown officials stated the project will complete within the estimated budget.


Shapero is to authorize the residual $23.5 million in loans during another hearing, which will take place at the end of this month.


If the loan was not approved, it would have been a huge loss to Greektown and it would have never come back to business again; however, the business should still face gambling law changes which might or might not occur within the state.





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