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Report: Owner near release from Aladdin obligations

Monday, Oct. 29, 2001 | 9:46 a.m.

London Clubs International is close to a deal with the Aladdin's bankers releasing it from its obligations to the bankrupt Las Vegas Strip hotel-casino, the Financial Times reported Sunday.

The publication cited no sources, saying only that LCI "is thought to be close to an agreement with its banks that would allow it to sever obligations to Aladdin." It said a deal could be announced within a week.

LCI and its Aladdin partner, the Sommer Trust, became liable for a $150 million "keep-well" payment when the Aladdin went into bankruptcy. LCI began talks shortly after the property went bankrupt in an attempt to lower or eliminate this payment.

It was not clear from the Financial Times report whether LCI would still have an equity stake in the Aladdin if a deal is finalized, or whether Sommer would still owe a portion of the $150 million keep-well payment.

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