Bidding War Ahead For Aladdin?

LAS VEGAS— Creditors of the bankrupt Aladdin here have solicited a $90 million offer to turn the desert-themed casino into a Planet Hollywood resort, starting what they hope will be a bidding war, according to an attorney for the property. A bankruptcy court has set May 7 to hear the offer, which includes assumption of $510 million in debt, said Gerald Gordon of Gordon & Silver, which represents Aladdin Gaming LLC, according to a Reuters report. The joint venture, which reportedly involves Starwood Hotels and Resorts Worldwide; Robert Earl, co-founder/CEO of Planet Hollywood; and investment company Bay Harbour Management, also would assume a $35 million loan to take over the casinos power plant, Earl told Reuters, adding if the May 7 hearing goes as planned, it would launch a 45-day bidding period. The casino, which reportedly cost more than $1 billion to build, went bankrupt in September 2001, about a year after it opened. The debt to be refinanced at that time included $400 million to $475 million due bank creditors and about $72 million more due principally to General Electric Cos GE Capital Corp. said the report. Earl toldReuters if his group wins its bid and gets a gaming license, it would completely revamp the casino without closing it The report indicated Starwood, through its Sheraton brand, will manage the hotel, and would take a small equity stake in the venture. Starwood may build a 600-unit timeshare piece on the property as well, it added. SOURCE: Reuters