Property to exit bankruptcy reorganization on June 30
Detroit’s Greektown Casino Hotel is set for a June 30 exit from a reorganization under the auspices of U.S. Bankruptcy Court with new owners and a new set of directors.
A court-endorsed plan calls for the casino to be owned by a group of bondholders that invested in the property prior to its obtaining the protection of federal bankruptcy law. Most of the equity will be held by three firms, MFC Global Investment Management, New York-based Oppenheimer Funds and New York-based Brigade Capital Management.
New York-based Solus Alternative Asset Management was not an owner prior to the reorganization but will own a significant portion of the equity in the new structure.
The new seven-member board of directors will consist of: Detroit Medical Center CEO Mike Duggan; former Detroit mayoral candidate Freeman Hendrix; former President of MGM Grand Detroit George Boyer; a Toronto-based investor, John Bitove; Benjamin Duster, executive managing director of Watermark Advisors, a strategic financial advisory firm; Joel I. Ferguson, a businessman with holdings in real estate and media; and Yvette E. Landau, an attorney and former chief legal counsel to Las Vegas-based Mandalay Resort Group and co-owner of W.A. Richardson Builders of Las Vegas.
Day-to-day management of the casino will be handled by Las Vegas-based Warner Gaming.
Greektown gets new owners, new management
January 27, 2010