Aladdin Gaming Files for Chapter 11 Protection
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Aladdin Gaming, the privately held parent company of the struggling Aladdin casino in Las Vegas, filed for Chapter 11 bankruptcy and said it had secured additional funding from creditors.
Aladdin said the filing will allow it to keep its 2,567-room hotel and casino in operation while it develops a plan to reorganize.
Aladdin said a group of lenders led by Bank of Nova Scotia had agreed to provide $9 million to meet short-term cash needs and stood ready to lend an additional $41 million as needed.
The highly leveraged Aladdin was already in trouble due to weak business conditions before Sept. 11, but the terrorist attacks and the subsequent slump in travel compounded its problems, analysts said.
The $1.2-billion resort, which includes a 100,000-square foot main casino and a separate 30,000- square-foot casino operated by joint-venture partner London Clubs International, has struggled since opening about a year ago.
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