Soo Tribe's Detroit casino files for bankruptcy

Detroit's Greektown Casino, in which the Sault Ste. Marie Tribe of Chippewa Indians is a majority owner, is filing for Chapter 11 bankruptcy protection.

The casino is seeking to reconfigure a $450 million debt related to its addition of a 400-room hotel and more gaming space.

Chapter 11 of the United States Bankruptcy Code allows troubled businesses to obtain protection from their creditors while undergoing a court-supervized reorganization of contractural and debt obligations.

It is not unusual for owners to end up with nothing at the end of Chapter 11 proceedings, as ownership of the reorganized business is often transferred to creditors.

The casino is expected to continue normal operations during its reorganization.

The following statement was issued this morning by the Sault Tribe:

************************* Greektown Casino seeks to reorganize finances

Business as usual at casino during Chapter 11 protection

DETROIT — Greektown Casino has voluntarily asked a federal court for approval to reorganize its finances and continue normal business operations under the protection of Chapter 11 of the U.S. Bankruptcy Code, the Sault Ste. Marie Tribe of Chippewa Indians announced today.

The casino is also finalizing $150 million in additional financing for operations and to complete the construction of its new 400-room hotel and gaming floor expansion. “As we reorganize our business and complete our permanent casino construction with additional financing, the goal is a bigger and more viable Greektown Casino,” said casino management board Chairman Tom Miller, who is also a member of the Sault Tribe board of directors.

“As we work through the reorganization process, the casino will continue to operate normally for all guests, player’s club members, employees, vendors, suppliers and contractors.”

The company noted that Chapter 11 protection allows a company to reorganize its financial structure under the supervision of the U.S. Bankruptcy Court.

Many companies have sought to reorganize successfully under Chapter 11 including Delta Airlines, Macy’s, Dow Corning, casino operator Tropicana Entertainment, Trump Hotels & Casino Resorts, Federal Mogul, and many more.

“Entering Chapter 11 reorganization, Greektown Casino is a healthy, profitable business,” said Van E. Conway of Conway MacKenzie & Dunleavy, a financial consulting firm working on Greektown Casino’s reorganization.

“Greektown Casino is finalizing debtor-in-possession financing that enables the company to complete its permanent casino and hotel, pay all obligations, and continue normal business operations during the entire process. This is really a great day for Greektown Casino because it’s a new beginning.”

Miller thanked the casino’s banks for affirming their confidence in the casino.

“With the support and confidence of our creditors, we have developed a plan to reorganize our business, and we will be implementing these action steps,” Miller said. “Many other companies have followed the path of Chapter 11 reorganization to emerge financially healthier and more vibrant enterprises. This strategy protects Greektown Casino for our patrons, tribal members and employees, and ensures the completion of our hotel and gaming floor expansion. This reorganization will only make us a stronger business, and that’s good news for the City of Detroit and southeast Michigan.”

In November, Greektown Casino opened its new attached parking structure, marking the completion of Phase 1 construction work on the new permanent Greektown Casino and hotel.

Phase 2 — construction of the casino’s new 400-room hotel and expanded gaming floor — is scheduled to be completed in phases in the coming months.

The permanent casino and hotel will include a multi-purpose theater, buffet, three restaurants, and 25,000 square feet of additional gaming space.

Total investment in the permanent Greektown Casino project will be about $500 million.

Located at 555 E. Lafayette Avenue in Detroit's Greektown Entertainment District, Greektown Casino features more than 2,300 slot machines and more than 70 table games in 75,000 square feet of luxurious Mediterranean-themed gaming space.

Additional slot machines and table games will become operational when the gaming floor expansion is completed.

Greektown Casino opened on November 10, 2000.

Readers of The Detroit News and Detroit Free Press have voted Greektown Casino Michigan’s and Detroit’s “Best Casino” numerous times.

In addition to being named “Best Casino” by readers of The Detroit News and Detroit Free Press, Greektown Casino also placed first in other categories in The News’ reader survey, including “Best Slots,” “Best Wait Staff Outfits,” “Best Craps Tables,” “Best Blackjack Tables,” “Best High Rollers Area,” “Best Casino Restaurant,” and “Best Casino Entertainment.”

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