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| No Genie in the bottle for Aladdin |
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8/21/2001 Hotel Casino posts large loss for quarter
The Aladdin hotel-casino in Las Vegas once again reported another large quarterly loss, raising the looming specter of bankruptcy.
Although the loss for this quarter was less than half the previous quarter?s shocking Even though the loss of $20.4 million for the quarter ending June 30 on revenues of $76.8 million was considerably smaller than the previous quarter's $47.2 million on revenues of $73.7 million, the holding company of the 2,567-room, $1.2 billion-resort publicly discussed bankruptcy as an option for the first time.
Cash flow at the newest resort on the Strip did increase 52 percent to $12.6 million, and table win, slot play and hotel operations all improved, but the resort is not keeping up with its debt payments. In fact, the Aladdin has only been able to make it debt payments lately with the help of one of its shareholders, London Clubs International.
The company is working on a deal to restructure its debt repayment in order to give the Aladdin some relief until the end of the third quarter next year. If the deal fails, the Aladdin said it would be in default on an estimated $700 million in debt, trouble from which only a real genie could pull them out.
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