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Greektown creditors committee argues hotel completion not key to filing plan of reorganization
By Jennifer Lanning Drey
Portland, Ore., Aug. 12 - Greektown Holdings, LLC's official committee of unsecured creditors objected to the company's motion to extend its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.
In the filing, the creditors disputed the company's claim that events leading up to the confirmation of a plan of reorganization are directly linked to the completion of construction of the hotel portion of a new entertainment complex in Detroit.
The creditors argued that Greektown is fully capable of developing financial projections, arranging exit financing and formulating and proposing a plan in advance of the completion of the complex.
"Completion of the expanded complex may be critical to establishing the feasibility of any plan proposed by the debtors; however, the filing of the plan itself does not need to await such completion," they told the court.
Additionally, the committee said financial data available after the targeted completion of the complex and prior to June 1 will not represent normalized data as the NCAA men's basketball tournament finals are scheduled for late March and early April, drawing thousands of additional fans to Detroit in that time period.
As previously reported, the company wants to extend the exclusive plan-filing period to June 1, 2009 from Sept. 26 and the solicitation period to Sept. 1, 2009 from Nov. 25.
Greektown, a Detroit casino operator, filed for bankruptcy on May 29. Its Chapter 11 case number is 08-53104.
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