Greektown Detroit files for bankruptcy. Discuss Greektown Detroit files for bankruptcy, on ChipTalk.net the place to go for your Poker chips and gambling tips. Read it in Casinos and Card Rooms.
There are about 4 articles in the Free Press. Greektown always was the Johnny-come-lately casino, run on a shoestring. Apparently, they never had much capital, just lots of debt they aren't too good at juggling.
Consensus seems to be they will come through this, but maybe with new (and better?) ownership or stakeholders. The main problem in the short term is that they are the last Detroit casino to build "permanent" new digs, including a hotel. They are in the middle of construction and the contractors are threatening to walk off the job if they don't get their money. That ain't gonna be good fer business.
It's always surprising when a casino goes bankrupt. A casino license is a license to print money. I travel to Detroit and play there every so often and it seems to be busy, so their expansion plans must have broke the bank.
Apparently Michigan gaming laws require an unusually high ratio of equity to debt in any casino operation. Greektown just has too much debt for the control board's taste. Greektown claims they are perfectly viable, but in order to comply with the gaming regs they needed to file for bankruptcy. But of course,they wouldn't lie about their financial condition at a time like this.
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