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November 27, 2009

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Resort makes key payment

Monday, July 2, 2001 | 11:02 a.m.

The Aladdin hotel-casino cleared a key financial hurdle when it made a $4.9 million interest and debt payment to its bankers Friday.

The payment is the second the Aladdin has successfully made since issuing a quarterly report that showed low cash reserves and weak cash flow at the property during the quarter ending March 31. The report had many speculating the property was in danger of falling into bankruptcy.

The Aladdin had $9 million in cash as of May 7. Since then, it's made $9.4 million in interest, debt and lease payments. An $8.8 million interest payment will be due July 31.

The Aladdin is still awaiting an $8.7 million "keep well" payment from its sponsors, the Sommer Trust and London Clubs International. That payment became due because the property's cash flow levels fell below required targets in the March 31 quarter. The payment was initially due May 31, but the deadline has been extended until mid-July. The Aladdin is understood to be using the additional time negotiating with its bankers to extend the payment schedule on its $670 million debt load.

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