Greektown Casino has been going through financial difficulty for years. They have still dredged on in their efforts to bring a casino to downtown Detroit. Now, their efforts have hit a wall.
Greektown Casino was in bankruptcy court trying to secure a loan that would help finish the downtown casino project. They are claiming that workers have stopped working, and that they need the loan to continue on with their project.
One of the board members was surprised that the Chapter 11 filing was on the horizon. “I had no information other than the fact that I’m a businessman and I knew it was one of their options. We were just starting to gather that information,” said Damian Kassab, president of the board.
The debt began to pile up when Greektown began the Detroit casino project. While the debt grew, the board set guidelines for Greektown to follow. “We couldn’t just let them do whatever they wanted. The concern, in general, was whether they were making enough money and have enough capital in relation to the debt they were taking on,” said Kassab.
The casino filed for bankruptcy because it had violated the terms of their agreement with their lender. Without being able to go back to the lender for additional funding, the casino then had no choice but to file.
Construction contractors have now gotten to the point that they have threatened, and followed through on their threat, of stopping their work until they receive payment. The casino is now looking for ways to come up with that money so the project can be completed.