Greektown ordered to provide additional detail in disclosure statement

By Jennifer Lanning Drey

Portland, Ore., Aug. 20 - Greektown Holdings LLC was ordered by the U.S. Bankruptcy Court for the Eastern District of Michigan to amend the disclosure statement for its plan of reorganization to include additional details on projections and calculations used in the document, according to a Thursday filing.

Specifically, the court ordered Greektown to specify the time periods for which actual operating results, as opposed to estimates, were used in preparing financial projections, as well as who prepared the financial projections.

Additionally, the court said Greektown's disclosure statement must be modified to include an executive summary of the figures and calculations used to arrive at its $540 million valuation and any other valuations set forth in the document.

The court also said the disclosure statement must include a detailed listing of intercompany claims and a calculation of the amounts expected to be owed to Greektown's debtor-in-possession lenders on the plan effective date.

The disclosure statement needs to include a more detailed description of specific claims and causes of action within the release and exculpation clauses of the plan, the court ruled.

The changes were ordered in response to a joint objection to the disclosure statement filed by Greektown's official committee of unsecured creditors, MFC Global Investment Management (U.S.) and Deutsche Bank Trust Co. Americas, as indenture trustee for the senior notes.

The joint objection was denied.

Greektown has until 10 a.m. ET on Aug. 26 to file an amended disclosure statement incorporating the changes.

Once filed, no additional objections will be allowed, and no further hearings will be held in reference to approval of the disclosure statement, according to the filing.

Greektown, a Detroit casino operator, filed for bankruptcy on May 29, 2008. Its Chapter 11 case number is 08-53104.

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