Judge OKs $51M Greektown financing for construction

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DETROIT - The Detroit News reported today: "A U.S. bankruptcy judge on Wednesday approved emergency financing of $51.3 million for Greektown Casino that it will use to pay contractors building the expanded gaming floor and 400-room resort-style hotel, as well as interest and other costs owed to its lender.

"Greektown attorneys told U.S. District Court Bankruptcy Judge Walter Shapero on Tuesday that without the money the $332 million permanent casino-hotel project would grind to a halt.

"Shapero agreed, giving Greektown the money it needs to pay off months-overdue bills to construction crews. Also good news for the casino was the judge's order that contractors and subcontracters provide written promises to stay on the job until the project is completed. They also must remove any liens they have placed on the casino for non-payment of bills.

"… In a statement, Charles Moore of Conway MacKenzie & Dunleavy, a financial consulting firm working on Greektown Casino's reorganization, called court approval of the financing "very good news for all parties."

" 'As we have said, entering Chapter 11, Greektown Casino is a healthy, profitable business that needs time to address its liquidity issue. In a matter of days, we will close on the debtor-in-possession financing, and Greektown Casino will be well on its way to becoming a more viable business through the completion of the permanent casino and hotel complex.'

"Greektown filed for Chapter 11 bankruptcy reorganization last Thursday, saying it will continue operations while it refinances millions of dollars of loans needed to finish the casino-hotel project."

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