| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers G > Headlines for Greektown Holdings LLC > News item |
Greektown indenture trustee claims company's plan understates value
By Caroline Salls
Pittsburgh, July 14 - Greektown Holdings, LLC indenture trustee Deutsche Bank Trust Co. Americas objected to the disclosure statement for the company's plan of reorganization, arguing that the plan is based on a valuation made before the gaming industry improved, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.
"The debtors prepared financial projections, commissioned a valuation and undertook a sale process during the bleakest financial period since the Great Depression and before their hotel and casino were actually completed," the trustee said in the objection.
As of Jan. 19, Deutsche Bank said Greektown was valued at $375 million, but the trustee said the gaming industry improved during the spring and early summer, the casino was completed and now the company's enterprise value "is approaching $700 million."
"Yet, on June 1, the debtors filed their plan based on the already superceded valuation report of January," the trustee said.
"That plan essentially would wipe out all creditors except the secured creditors."
Deutsche Bank said the company did restate the value at $540 million on July 10, but that new valuation still understates Greektown's true reorganization value.
According to the objection, the company and its secured lenders plan to fix the valuation date as soon as possible to have the valuation as low as possible, but they plan to continue in bankruptcy for six months or more after the valuation date.
Greektown, a Detroit casino operator, filed for bankruptcy on May 29, 2008. Its Chapter 11 case number is 08-53104.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.