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November 27, 2009

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Status of $8.7 million Aladdin payment unknown

Wednesday, May 30, 2001 | 11:06 a.m.

There was no word this morning on whether the Aladdin hotel-casino received an $8.7 million "make-well" payment from its two owners, as required by the property's agreements with creditors.

The $8.7 million payment came due Tuesday, but Aladdin spokesman Fred Lewis said the equity owners -- the Sommer Trust and London Clubs International -- have a 48-hour grace period in which to make the payment. Lewis said Tuesday afternoon he was unaware if any payment had been made yet.

Aladdin officials couldn't be reached this morning on whether the payment was made today.

The $8.7 million would help shore up the Aladdin's balance sheet, as the property faces $18.2 million in debt and lease payments in the next two months, but had just $9 million in available cash on May 7. A $4.5 million equipment and furnishings lease payment is due Friday, followed by a $4.9 million debt and interest payment June 29. An $8.8 million interest payment follows on July 31.

The Aladdin's debt-heavy capital structure and struggles in the first quarter have many industry analysts speculating the property would be forced into bankruptcy if the equity holders fail to make the $8.7 million payment.

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