Greektown Casino Will Not Close Despite Loan Problems

A turnaround expert working with Greektown Casino said the casino could keep operating even if additional loans needed to pay for the hotel are not approved by the U.S. Bankruptcy Court.

Charles Moore, senior managing director of Birmingham-based CM&D, said the casino needs $46 million in additional loans to finish its 400-room hotel, which is to open Feb. 12. The hotel is crucial to the casino's future, but if the loans are not approved, the casino would find a way to restructure and keep operating, he said.

"No one is going to let the casino close," Moore said.

Moore testified Tuesday afternoon before U.S. Bankruptcy Judge Walter Shapero on behalf of Greektown's owners. Testimony is to resume at 9:30 a.m. today.

Moore added, however, that an incomplete hotel would be very detrimental to the casino's future, causing confusion among consumers and scaring away potential purchasers of the business, which filed for bankruptcy protection last May.

Without the loans, Greektown officials say their general contractor may walk off the job, leaving the hotel incomplete.

For the complete story, please see Mary Francis Masson Expert: Greektown casino will not close, Detroit Free Press, February 4, 2008.