Detroit's Greektown Casino said it's business as usual, even though the owners filed for bankruptcy on Friday. Casino officials say the Chapter 11 claim is an attempt to reorganize the $650 million debt used to finance its massive expansion project.
Roger Martin, a Greektown Casino spokesman, told WWJ Newsradio 950 the bankruptcy filing is to reorganize the company and will not effect jobs, expansion plans or casino operations.
“This is a path that is used by otherwise healthy companies that have debt or liquidity issues to emerge far healthier, and that is our intent,” Martin said. “It is business as usual at Greektown Caisno. We’re open for entertainment just like we are every night. There are no changes in employees; there are no changes for our guests. We are open for business.”
Martin stressed that misunderstanding atttributed to filing for Chapter 11.
“So many people when they hear the word bankruptcy,” Martin said, “ they eventually confuse that with ‘Oh my gosh, the business is closing.’ That’s not the case. No that’s chapter 7, when a business is basically kurplunk and must close and liquidate it. We’re chapter 11, that’s reorganization. Again, that’s a path so many other companies have taken.”
He added that the casino is also finalizing $150 million in additional financing to finish construction of its 400 room hotel and gaming floor expansion. The new hotel is expected to open early next year.
On Mackinac Island this week for the Detroit Regional Chamber's annual Mackinac Policy Conference, Southeast Michigan leaders were reacting.
Detroit City Council President Ken Cockrel Jr. said he wasn't surprised,“It seems to me it’s just an essential and necessary step towards reorganization” Cockrel said. "I think the casino’s going to be around as well.” He added that based on his conversations with Greektown executives, the bankruptcy filing is something they needed to do so they can stay around and make a profit.
Wayne County Executive, Bob Ficano, also spoke with WWJ at the conference.“It has been a difficult struggle for them in what they’re trying to do,” Ficano said. “Hopefully they’ll be able to reorganize. They’ve made a tremendous investment in the city, and we want to see them be successful.” To listen to the full interview with Ficano, click here.
Meanwhile, some expect more “shaking out” within the gaming business.
“One of the problems they may be experiencing is the other two casinos received their improvements up and running earlier,” said Doug Rothwell, president of Detroit Renaissance. “I think that because they’re behind the curve there some of there business did gravitate to MGM and Motor City. They’re going to have to play catch up a little bit.”
Greektown Casino opened in 2000 and employs nearly 2,000 people. It opened four years after the MGM Grand and Motor City Casino; it’s the least profitable of the three.
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