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Greektown creditors committee objects to proposed exclusivity extension
By Jennifer Lanning Drey
Portland, Ore., Nov. 14 - Greektown Holdings, LLC's official committee of unsecured creditors objected to the company's request for an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, in a Friday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.
The creditors claimed that six months after filing for bankruptcy, Greektown has not developed a means of financing a plan of reorganization and, as a result, has had no plan negotiations with creditor constituencies.
As previously reported, Greektown said it needed the additional time to allow for the completion of a process demanded by its major creditors that includes retention of an investment banker and the generation of expressions of interest for either a sale or reorganization of the company.
Greektown has in the past argued that completion of its expanded hotel complex is essential to enable interested parties to formulate and submit expressions of interest.
However, in its objection the creditors committee noted that the company is seeking to extend its exclusive plan-filing period to Feb. 15, yet the complex will still be under construction on that date.
"It is, therefore, apparent that the debtors intend to again use this straw man to seek a third extension of exclusivity in February," they said.
Greektown wants to extend its exclusive plan-filing period to June 1, 2009 from Sept. 26 and the solicitation period to Sept. 1, 2009 from Nov. 25.
Greektown, a Detroit casino operator, filed for bankruptcy on May 29. Its Chapter 11 case number is 08-53104.
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