In re Greektown Holdings LLC

City of Detroit OKs Greektown Bankruptcy Plan

Matthew L.M. Fletcher

From the Detroit News via Pechanga:

Detroit — A plan to hand control of Greektown Casino-Hotel to its largest group of creditors has been tentatively approved by the city of Detroit and could get the casino of out of Chapter 11 bankruptcy by the end of the year.
The tentative agreement was unveiled this morning at a meeting of the Michigan Gaming Control Board. The casino would be in the hands to the largest group of secured creditors, represented in the case by banking and investment giant Merrill Lynch.

“This is a major milestone,” said attorney Daniel Weiner of Bloomfield Hills-based Schafer and Weiner, who represents the debtors. The tentative agreement was reached with the city Friday, but needs approval by City Council, Mayor Dave Bing, the gaming board and U.S. Bankruptcy Court Judge Walter Shapero. A confirmation hearing in bankruptcy court is set for Nov. 3, which would be followed by a vote of the gaming board.

The other suitor for the hotel and casino was an effort lead by Bloomfield Hills business man Tom Celani, in partnership with Connecticut-based hedge fund Plainfield Asset Management.

Greektown’s owners, the Sault Tribe of Chippewa, filed for Chapter 11 protection on May 29, 2008. The Detroit casino has more than $777 million in debt.

Chuck Moore, a financial advisor working on the Greektown case, said he anticipates that the tentative bankruptcy agreement will ultimately be approved.

“We anticipate a contested confirmation hearing, but it will be approved,” Moore told the Michigan Gaming Control Board.

Sault Tribe May Give Up Majority of Control in Greektown to Merrill Lynch

Matthew L.M. Fletcher

From Indianz:

The Sault Ste. Marie Tribe of Chippewa Indians could give up ownership of its commercial casino in Michigan under bankruptcy plan before a federal judge.

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Greektown Update — Court Grants Motion to Assume Development Contract with City

Matthew L.M. Fletcher

Here’s the news article explaining all of this (link to Freep article). And here are the materials:

DCT Order Granting Motion to Assume Executory Contract

Greektown Motion to Assume

Greektown Less Likely to Sell, Given Low Bids

Matthew L.M. Fletcher

From the Detroit News (via Pechanga):

Greektown Casino-Hotel will spend more time looking at ways to reorganize its debts rather than selling the property to exit bankruptcy, after multiple bids came in lower than expected, a financial adviser for the gambling hall said Thursday.

Chuck Moore, an adviser from Birmingham-based Conway MacKenzie Inc., which is working on Greektown’s bankruptcy, told the Michigan Gaming Control Board at its Thursday meeting that his team would shift focus toward looking at ways the casino can reorganize some $777 million in debt.

“There was disappointment at the values of the bids we’ve seen so far,” Moore said. “Our creditors don’t believe they adequately compensate for the performance of the property.”

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Greektown Decision on Tax Rollback Due May 14

Matthew L.M. Fletcher

From the Detroit News:

Lawyers for Greektown Casino-Hotel and the city of Detroit will have to wait two more weeks to hear if a bankruptcy judge thinks the casino can assume a development agreement that would grant a tax rollback saving roughly $17 million annually.

At an unusually short Friday hearing, federal Judge Walter Shapero said he’ll issue his opinion on the matter at 3 p.m. on May 14.

The tax rollback issue is particularly contentious for Greektown, which entered Chapter 11 proceedings 11 months ago. By filing, Greektown was able to secure the financing it needed to complete construction on its 400-room hotel and resort complex.

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Bankruptcy Judge Tours Greektown

Matthew L.M. Fletcher1 Comment

From the Detroit News (via Pechanga):

Could the big empty shell of a room tucked away in a corner of Greektown Casino-Hotel’s downtown complex serve as a viable event center?

That’s the question facing bankruptcy judge Walter Shapero this afternoon as he tours what Greektown lawyers call an event center and what attorneys for the City of Detroit are calling a breach of contract.

Greektown is arguing for a tax rollback from the city and state that would save it millions a year in taxes levied on gaming revenues. That rollback is dependent on compliance with a revised development agreement approved by Detroit City Council in 2006.

Greektown wants Judge Shapero to rule that the casino has complied with the agreement, opening the door to lower taxes and giving the casino the ability to transfer the agreement, along with the lower tax rate, to a new owner should it decide to sell.

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Bankruptcy Court OKs Greektown Financing

Matthew L.M. Fletcher

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.

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Greektown Filing — Unsecured Creditors Objection to New Financing

Matthew L.M. Fletcher

unsecured-creditors-objection

Greektown Bankruptcy — New Financing Filings

Matthew L.M. Fletcher

Looks like they need $46 million more (news article).

greektown-motion-for-additional-financing

greektown-proposed-order-re-new-financing

greektown-proposed-credit-agreement-part-1

greektown-proposed-credit-agreement-part-2

greektown-proposed-credit-agreement-part-3

greektown-proposed-credit-agreement-part-4

greektown-proposed-credit-agreement-part-5

greektown-proposed-credit-agreement-part-6

Greektown Casino Bankrupty Materials — Motion to Extend Time

Matthew L.M. Fletcher1 Comment

Here is a selection of materials on the Greektown Holdings LLC’s motion to extend its planning period for finalize bankruptcy for 90 days. Other materials are here.

greektown-motion-to-extend-planning-period

michigan-gaming-control-board-objection

greektown-reply-brief