From the Freep:
Greektown Casino can borrow the money it needs to complete its new 400-room hotel, a U.S. Bankruptcy Court judge ruled today.
Judge Walter Shapero approved $22.5 million in loans, part of a $46-million financing package that the downtown casino owners say is needed to keep its general contractor on the job.
The hotel is expected to open Thursday.
Creditors balked at the cost of the financing, but eventually agreed to the deal. Greektown must pay the lender about $7.5 million in fees and agree to an interest-rate hike on its current financing package of $150 million.
“The creditors committee views the completion of this project as important to any recovery,” said Joel Applebaum, a Clark Hill attorney representing the unsecured creditors, who objected to the deal initially. “The importance of those fees are less than the fact that we’re nine days away from the opening of the hotel. We want to do nothing to jeopardize that.”
Greektown filed for bankruptcy protection in May 2008.
The hotel and expansion at the casino were expected to cost about $550 million, but Greektown officials say the project will finish under budget.
Shapero is to approve the remaining $23.5 million in loans at another hearing, likely later this month.
Turtle Talk 