Aladdin Hotel Files for Bankruptcy

By Associated Press

September 28, 2001, 11:23 PM EDT

LAS VEGAS -- The troubled Aladdin hotel-casino filed for Chapter 11 bankruptcy protection Friday as creditors stood poised to seize its slot machines and other equipment.

The move allows the Las Vegas Strip's newest resort to remain open while management reorganizes hundreds of millions of dollars of debt, company officials said.

The resort has been struggling ever since its opening about a year ago. The severe drop in Las Vegas tourism after the Sept. 11 terrorist attacks dealt the resort yet another blow.

The hotel-casino's debt has been estimated as high $740 million. Court papers showed a debt of $593 million.

Aladdin Gaming LLC will receive $9 million from the company's lending group to meet its short-term cash flow needs, officials said.

Creditors also expressed to the court a willingness to lend up to $41 million to keep the 2,567-room resort afloat.

"Today's speedy and positive response by the court is a heartening move forward for Aladdin," Aladdin spokesman Fred Lewis said in a statement.

"We will get about the business of reorganizing, mindful that we are part of a community and an industry that is feeling the effects of a national disaster," he said.

The resort faced the possible loss of its slot machines and other equipment if it didn't file a bankruptcy petition by Friday, according to lenders who had not been paid.

About 2,600 people work at the Aladdin; 500 were laid off after the terrorist attacks. Copyright © 2001, The Associated Press

-- Anonymous, September 29, 2001

Answers

I have a friend out there who was offered a promotion at the casino he worked at, but chose instead to leave and start anew at another casino, in a higher paying job.

I bet he wishes he had stayed put.

-- Anonymous, September 29, 2001

So many industries have been and will be affected. If they were in a slump before, many of them will only continue to see harder times because of 911. Now in the headlines, we are seeing the hotels, airlines, cruise ships. I don't see them coming back soon, because of the fear of traveling and/or the belt tightening that comes with layoffs and apprehension of what the next day will bring in regards to the terrorism and war with others. In uncertain times, we hold back and are very cautious of whats around the corner.

When I spoke to a friend yesterday, 6 people she knows is flying out to Vegas for a visit and she wanted me to come out also. I told her no way would I fly at this time.

-- Anonymous, September 29, 2001

The casino's are getting a little desperate... I'm working over the weekend for my old bosses, as the gov's fiscal year-end closes Sunday, hoping to pick up a few last minute orders and a little commission...

Just had a phone call come in from one of those automatic dialer programs, with a recorded message with an invitation to for 2 days and nights free from one of the Vegas casino's, double occupancy. They seem to be blanket calling every phone number within driving distance, trying to drum up some business.

-- Anonymous, September 29, 2001

Indians here in SoCal are crying their eyes out. Maybe they won't be able to buy our next governor afterall.

-- Anonymous, September 29, 2001

I emailed my friend to see how he was doing. He is doing fine, he has actually hired 12 people so far who have been laid off from several casinos.

Good to hear, actually.

-- Anonymous, September 29, 2001

My sister had just started working at one of the Vegas casinos. Haven't heard yet if she kept the job.

-- Anonymous, September 29, 2001

Barefoot, your friend will be able to pick and choose from alot of people that are out of work there. Glad your friend is doing okay.

-- Anonymous, September 29, 2001

thanks Maggie. I am too. there were a few rough years back during the 80's, but he has managed to come thru them. It seems Vegas is a fickle town. He has a lot of banking experience since he had been in that profession for some years. After leaving his last banking position he went to work for a casino, moving around a few of them as opportunity presented itself.

I haven't seen him in person since our last visit to Vegas in '94, but we talk on the phone and write sporadically. Now that he has gotten on line, we write more. We were hoping to visit him next year, perhaps flying to Vegas again, or he and his family coming to Miami. Perhaps we can still meet somewhere, perhaps in Kansas, if he plans on visiting his family there. We can drive up there easily enough.

-- Anonymous, September 30, 2001

Slight drift here. I was at Kroger yesterday--a busy Saturday afternoon--and found one person at the deli counter. She mentioned she was also taking care of the adjoining bakery counter. Then she remarked that it was really her day off, that she had been called in because they were short-staffed. Got to the checkout--only four were open! I was in line about ten minutes. This is a pretty large Kroger store and this is not the first time I've noticed a lack of staff. I guess the unemployment problem is in the high-paying jobs, not the minimum-wage types.

-- Anonymous, September 30, 2001

Barefoot, I remember the 80's and all the problems with banks. It was an awful time for them and alot of the people who lost money. Let me know if you plan to go to Kansas to see him next year. I'm glad you are able to stay in contact via the interet.

Old Git, just maybe... alot of businesses are short staffed because of the call up of so many in the National Gaurd.

-- Anonymous, September 30, 2001

Carl, good for you about working this weekend. I hope everything is going well for you.

Carlos, I haven't seen you around in ages! Glad to see you here.

-- Anonymous, September 30, 2001

Brooks, let us know how your sister in Vegas is doing.

-- Anonymous, September 30, 2001