Bankrupt Aladdin casino gets court nod for change
LOS ANGELES, Aug 28 (Reuters) - A U.S. bankruptcy court judge confirmed on Thursday a plan that will transform the bankrupt Aladdin casino on the Las Vegas Strip into a Planet Hollywood-themed resort, a lawyer for Aladdin said on Thursday.
A team of investors in rock-and-roll restaurant chain Planet Hollywood and Starwood Hotels (NYSE:HOT) bid $635 million to take over and transform the newest casino and hotel on the Strip, but they must get licenses from Nevada gambling authorities before the deal can close.
The Aladdin cost an estimated $1 billion to build but went bankrupt in September 2001, about a year after it opened, sparking a long legal process and eventual bidding war won by the Planet Hollywood team in June.
Bill Noall, an attorney from Gordon & Silver, which represents Aladdin Gaming LLC, said the licensing process for the new team could take six months to a year.
Judge Robert Jones of the Nevada district U.S. Bankruptcy Court confirmed the reorganization plan on Thursday, he said.
Planet Hollywood investors Robert Earl and Bay Harbour Management agreed to assume $510 million in debt for the casino and hotel, assume a $35 million loan for the casino's power plant and invest $90 million to turn the desert-themed property into a rock-and-roll palace.
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