From the Freep:
Greektown Casino said Tuesday its plan of reorganization was supported by a majority of creditors, paving the way for it to emerge from bankruptcy after confirmation hearings next month.
Charles Moore, a turnaround expert for the casino’s estate, told the Michigan Gaming Control Board on Tuesday that 80.6% of pre-petition lenders representing $220.7 million in claims voted to accept the casino’s plan.
Voting results on the alternative plan offered by Luna Greektown LLC and Plainfield Asset Management LLC were not available Tuesday.
Creditors representing much smaller amounts owed voted overwhelmingly to reject the Greektown reorganization plan, according to a filing Tuesday with the U.S. Bankruptcy Court in Detroit. Confirmation hearings on the plan are to begin Nov. 3 and are expected to last four days.
The pre-petition lenders will receive equity in the new casino and be the new owners, Moore told state regulators. Fine Point Group would continue to manage the casino, he said.
The board also was told of a settlement between the City of Detroit and Greektown Casino that would give the city a $15.3-million payment and free the casino to seek a 5% tax rollback from state regulators.
Moore said that Greektown would approach the board at its next meeting Nov. 10 for approval. That would give the casino time during confirmation hearings the prior week to receive court approval for the rollback first.
The casino, under Chapter 11 bankruptcy protection, would reduce its annual city and state taxes by $15 million with the rollback.
The city had argued that Greektown Casino was not eligible for the tax break already extended to MotorCity Casino and MGM Grand Detroit casino because it violated its development agreement.
The casino, which opened its hotel in February, had argued that it met the requirements for its permanent facility then.
Moore also told the state gaming board that Greektown’s goal is to emerge from bankruptcy by Dec. 31.
Turtle Talk 