Just one week after filing for bankruptcy protection, the plans for the Detroit Greektown Casino have been saved as an interim financing arrangement has been approved by the Michigan Gaming Control Board.
The new funding agreement will allow construction work to continue on the permanent casino and hotel.
The funding agreement was approved on Wednesday by a US bankruptcy judge, and will give the company $51.3 million in financing. The deal has also been approved by the gaming board.
The casino plan to pursue final approval of $150 million in additional financing for operations and to allow them to complete construction of the hotel and casino. The completed casino hotel will have 400 rooms and an extra 25,000sq feet of gaming space.
There will be a hearing for the final approval of the loan, which will come from lenders led by Merril Lynch, later this month.
The casino employs around 2,000 people, and has 70 table games and 2,300 slot machines. They have been having severe financial difficulties for several years, and were forced to request bankruptcy protection and a loan so that they could finish the construction project, as they had violated the terms of their original loan, and construction workers were refusing to continue working until they received payment.
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