Another Bidder Emerges For Bankrupt Aladdin Resort

LAS VEGAS, NV— A California-based investment group has reportedly become the third suitor in the bidding fray for the bankrupt Aladdin here. According to a story appearing in the pages of the Las Vegas Review – Journal, Orange County-based KenPat Entertainment Group— said to include California real-estate developers and Korean investors— and Laguna Niguel, CA developer Calstar Properties, submitted one offer of $425 million for the bankrupt Aladdin but later sweetened it. It was claimed KenPat lawyer Frederico Sayre couldn’t disclose the amount of the new offer, but did purportedly contend it would be an all-cash deal. The article had Sayre saying his client’s group delivered its bid two weeks ago to Aladdin owners and representatives of KPMG Corporate Recovery Services, the company hired to sell the property, in a meeting in offices on the Aladdin’s fourth floor… and that “this bid was received favorably.” It was noted creditors for the Aladdin, the $1.05-billion Las Vegas Strip property that entered bankruptcy in 2001, have selected a $635-million bid by a group of investors fronted by Planet Hollywood and including Bay Harbour Management and Starwood Hotels & Resorts as its preferred bid. That partnership would ostensibly assume $510 million in debt and commit to $90 million in improvements. If that bid were accepted, the property would become Planet Hollywood and the hotel would become a Sheraton. A second group, led by Financial Capital Investment, offered to assume $476 million of the casino’s debt and invest $100 million in capital projects. It was further maintained that Marriott International similarly joined the Financial Capital bid, citing an interview with Financial Capital representative Richard Alter. The Marriott deal also reportedly includes a 50- 50 joint venture to develop an adjacent property with timeshares. Under the reported deal, Marriott would manage the hotel but have no role in casino management. It was reported that, if the Financial Capital/Marriott bid wins, Alter said his group would re-name, re-theme and re-model the hotel. SOURCE: Las Vegas Review – Journal