After filing for Chapter 11 protection just last week it seems that the consortium which includes Greektown Casino LLC, Greektown Holdings LLC and a number of affiliates are still looking to complete their venture in downtown Detroit. They have applied to the bankruptcy courts for a $45 million loan to enable them to pay contractors on the site and ensure construction of the hotel and gambling complex is able to go ahead.
The group of companies applied for Chapter 11 protection as they attempt to complete a $150 million financing for the project. The protection of the US courts gives them breathing space in which to try and complete the financing deal and get the project back on track. If they are unable to complete the banking arrangement the future of the group will be cast into serious doubt.
The bankruptcy laws in the US are very different to those in the UK with US officials very much in favour of giving troubled companies time to sort out their affairs, where possible, before allowing the onslaught of creditor claims. There are hopes that the Detroit casino venture will be completed on time and to budget, but this next step in the financing procedure is vital to the cause.
After filing for Chapter 11 protection just last week it seems that the consortium which includes Greektown Casino LLC, Greektown Holdings LLC and a number of affiliates are still looking to complete their venture in downtown Detroit. They have applied to the bankruptcy courts for a $45 million loan to enable them to pay contractors on the site and ensure construction of the hotel and gambling complex is able to go ahead.