LAS VEGAS— A federal judge selected a joint venture involving Planet Hollywoods co-founder and the Starwood hotel chain to buy the bankrupt Aladdin hotel-casino on the Las Vegas Strip. U.S. Bankruptcy Judge Robert C. Jones on June 20 chose OpBiz, a partnership that includes Starwood Hotels & Resorts, Bay Harbour Management and Planet Hollywood CEO Robert Earl, because the group had the backing of secured and unsecured creditors. The judges decision ended an 18-month process that included a frenzy of last-minute negotiations between bidders and creditors during a standing-room only purchasing hearing in U.S. Bankruptcy Court. Three parties attempted to compete with OpBiz for the Aladdin during last Fridays proceedings, but none had all the requisite pieces of a deal in place, especially all-important financing. OpBiz has been in talks with the Aladdin for about eight months, and was named the stalking horse, or lead bidder, in the bankruptcy case in May. OpBiz intends to assume $510 million of Aladdin debt and other liabilities. OpBiz will invest $90 million over three years in the 2,567-room hotel-casino and keep all of its employees. The Arabian Nights-themed resort will be renamed Planet Hollywood Hotel & Casino. Starwood will manage the hotel through its upscale Sheraton brand. It will receive 4% of revenues plus expenses, and give the hotel chain a coveted spot on the Strip for its preferred club members to redeem and earn points. It is unknown how long it would take to transform the Aladdin. OpBiz still must obtain a state gambling license, and Jones must approve plans for the makeover when they are completed. Aladdin lawyer William Noall said it could take until March 2004 before a deal is completed with the lenders and the Aladdin emerges from bankruptcy under new ownership.
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