Greektown Casino Defies State Gaming Board, Declares Bankruptcy
Unable to reach a compromise with the Michigan Gaming Control Board, the owners of Detroit's Greektown Casino have sought bankruptcy protection to avoid a forced sale.
The Gaming Board had given the Sault Ste. Marie Chippewa Tribe until June 10th to provide reason the state should not force the casino's sale to new ownership.
The tribe had previously made arrangements with Entertainment Interests Group to sell 40%of the casino for a cash influx of $100 million, but the Board was not satisfied, citing figures showing the casino would soon again dip below a mandated debt-to-earnings ratio.
By using bankruptcy as a shield from the Board, Greektown management will have time to refinance loans and complete renovations and construction of a 400-room hotel.
A Greektown spokesman said day-to-day operations would remain the same while the company reorganized its finances. The relationship with state and city government would continue as is, including regulatory activities and payments of taxes.
Richard Face, a customer spotted exiting Greektown, said ,"As long as my casino keeps its doors open for business, the big shots can argue anout who gets the billions all they want."
