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and Others Signs Agreement to Acquire Aladdin Resort & Casino; Plans to Re-theme to "Planet Hollywood Hotel & Casino, a Sheraton Hotel" |
LAS
VEGAS, April 23, 2003 - Aladdin Gaming, LLC announced today that it signed
a Purchase and Sale Agreement to sell the 2,567-room Aladdin Resort &
Casino and the 7,000 seat Theatre of Performing Arts located on the Las
Vegas Strip. The Purchase and Sale Agreement is subject to bankruptcy
court approval.
The agreement was reached between Aladdin Gaming, LLC, owner of the Aladdin Resort & Casino, and a joint venture between Robert Earl, the CEO and co-founder of Planet Hollywood, Bay Harbour Management LC and Starwood Hotels and Resorts Worldwide, Inc. The Joint Venture has appointed Mike Mecca to be its President and CEO. Prior to his appointment to these positions, Mr. Mecca served as the General Manager of Green Valley Ranch Casino & Spa. Pursuant to the agreement, the Joint Venture will retain existing Aladdin employees. As part of the transaction, the Joint Venture will assume $510 million
of restructured Aladdin Gaming notes and certain other liabilities, including
Aladdin Gaming's ongoing obligations to Northwind Aladdin, LLC. In
addition, the agreement requires the Joint Venture to invest $90 million
of new equity capital for the primary purpose of enhancing and re-theming
the resort as the new "Planet Hollywood Hotel & Casino," a Sheraton
Hotel. Pursuant to a separate license agreement, Planet Hollywood
has agreed to put on exhibit various displays from its considerable collection
of movie and television memorabilia. Starwood, through its Sheraton
brand, will manage the hotel operations and will not have responsibility
for casino operations. The parties also contemplate that Starwood,
through its Starwood Vacation Ownership division, will develop a Westin
Vacation Resort of up to 600 units at the property. The purchase
will not include the adjoining Desert Passage
Aladdin Gaming will seek a bankruptcy court hearing for June, at which time Judge R. Clive Jones will consider approving the agreement and/or any other qualified competing proposals. The sale will be subject to confirmation of Aladdin Gaming's Plan of Reorganization, which is expected to occur in August. Aladdin Gaming is currently operating as a debtor-in-possession under Chapter 11 of the Bankruptcy Code, which proceedings were instituted on September 28, 2001. The closing date for the purchase has not been set, as prior to closing, the purchaser must obtain a gaming license from the Nevada Gaming Commission. Further information concerning the transaction may be obtained from Jeff Truitt of KPMG, LLP, 213.630.2200. |
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Tyri Squyres Aladdin Gaming, LLC +1-702-785-5011 http://www.aladdincasino.com |