US Casinos Fighting out of Recession
With America’s economy finally starting to claw its way out of the recession many of the country’s casinos are starting to show signs of regeneration. One such gambling establishment that was hit by the credit crunch more than most was the Greektown Casino. After filing for bankruptcy it looks as though the casino will have finally dragged itself from the mire by next June.
Creditors for Greektown signed off on a plan this Thursday which has opened the door for a series of discussions and meetings as to the future of the casino. One of the main hold-ups initially was the original bondholders of Greektown were keen to keep receiving a portion of the Casino’s earnings.
The new plans would see entitle them to 6% in common stock and also the further rights to 4185 million in preferred stock (which corresponds with the amount currently owed to the bondholders).
The other 94% of the casino will be owned by several different groups including: Oppenheimer Funds Inc., MFC Global Investment Management LLC, Brigade Capital Management and Sola Ltd. Commenting on the Greektown Casino’s emergence from bankruptcy, turnaround expert Chuck Moore said: "It has been a very lengthy negotiating process, but it is being done. All parties are aiming toward the same goal, which is to speed the casino's exit from bankruptcy." With many other casinos across America, including establishments in Las Vegas and Atlantic City, currently considering bankruptcy protection it seems as though the gambling industry may be starting to regain their financial might.