Thursday, June 19, 2003
Copyright © Las Vegas Review-Journal
ALADDIN BANKRUPTCY: Bidder status murky
No word on bankrupt megaresort's additional suitors
By JEFF SIMPSON
GAMING WIRE
Cars and people on Wednesday pass by the Aladdin. Additional bidders for the bankrupt casino were expected on Wednesday.
Photo by K.M. Cannon.
|
The Aladdin's future remained in doubt late Wednesday, more than 24 hours after the deadline for additional bidders to submit their proposals to buy the bankrupt the megaresort.
Offers topping a $635 million stalking-horse bid fronted by Planet Hollywood Chairman Robert Earl along with a check for $12.5 million were due Tuesday at 3 p.m., and bankers were slated to begin considering any offers one hour later.
The bankers were expected to consider the terms offered by each group, evaluating the offers' cash value and operational plans and their key players' backgrounds.
But by late Wednesday, no announcement about whether or not a second qualified bidder was selected was made, and property lawyers and representatives of the bidding groups were unavailable for comment.
If bankers don't select a second qualified bidder, the stalking horse Planet Hollywood offer, the sole qualified bidder, is expected to be awarded the property Friday morning in U.S. Bankruptcy Court.
Earl's group plans to rename the property Planet Hollywood and refurbish and retheme the property with movie memorabilia.
Earl was unavailable for comment Wednesday evening.
An informed source said several key players involved in the Planet Hollywood bid were at Aladdin most of the day, presumably in meetings with bankers and property bosses.
Richard Alter, point man for Los Angeles-based Financial Capital Investment Co., was unavailable for comment Wednesday evening, but late Wednesday afternoon he said he was still in meetings and thought his group's bid would be qualified.
Alter's bid was considered most likely to be qualified by the bankers. Alter's proposal would rename the property "ASIA" with Marriott International managing the hotel.
Aladdin lawyer Gerald Gordon recently said the sales process was designed to maximize the price creditors would receive, but he was unavailable Wednesday for comment, as were Aladdin's top executives.
Informed sources said KenPat Entertainment Group, a group of California and South Korean investors that two weeks ago announced its intention to make an all-cash offer, did not submit its upfront escrow check, scotching its bid.
No other groups have publicly announced their intention to bid on the Aladdin.
Earl said earlier in the week that his group's operational plan and management team were significant advantages in the process.
Earl's group has lined up former Greektown and Green Valley Ranch general manager Mike Mecca to run the property if it buys the property, while the Asia group would have former Caesars Palace boss and Park Place Entertainment honcho Dean Harrold run the megaresort.
Both groups plan to retain Aladdin employees.
