LAS VEGAS A recent Reuters report said that the $1.3 billion Aladdin Hotel and Casino here has struggled in its initial months of operation and may fail to meet upcoming financial obligations without a debt restructuring or cash infusion. Since its opening last August, the Aladdin has reduced its staff to 3,100 workers from an initial 4,500, according to the company s quarterly filing with the SEC. For all of 2000, the company reported a net loss, including operating costs of $8.56 million.
The company said it amended its bank credit facility with its various lenders on March 30, so it could meet its financial obligations amid disappointing results. But further revisions may be necessary. To address the potential shortfall, Aladdin said it is exploring several alternatives, including taking on more debt or selling an adjacent five-acre parcel of land. The company also said it may try to reach a new agreement with its creditors. (4/2/01)
SOURCE:Reuters