Detroit's Greektown Casino Files for Chapter 11 Bankruptcy

2 June 2008

Greektown Casino in Detroit, Michigan has filed for Chapter 11 bankruptcy protection due to cash-flow problems hindering its expansion plans.

"We are a financially healthy company that basically has a liquidity issue right now, and Chapter 11 allows us to make a new beginning," Casino spokesperson Roger Martin told Detroit's WWJ Newsradio 950.

Greektown has accumulated more debt than it can handle at the moment and hopes to work out a deal that will allow it to keep operating while it finishes expansion.

Owned by the Sault Ste. Marie Tribe of Chippewa Indians, the casino trying to complete the construction of a new 400-room hotel and gaming floor expansion. Contractor Jenkins/Skanska Ventures is owed $24 million for work performed back to February. Another $12 million is due June 30.

Greektown has paid $184 million on its expansion so far and says it needs to borrow another $140 million to complete construction.