LANSING, MI - The Michigan Gaming Control Board voted 4-0 to schedule June 10th for a "show-cause" hearing on whether to force the sale of Greektown Casino for not achieving its required financial goals.
The board's Executive Director, Richard Kalm, said Greektown violated a 2005 board order to maintain their debt-to-EBITDA ratio below 6.25-to-1, and that failure authorizes the board to force the sale of the casino.
A consulting accountant for the gaming board, Charles Jaskolski, said
Greektown's own forecasts show they will be $43 million short even after a
$79 million equity infusion from Entertainment Interest Group Inc. (EIG), a group that has agreed to buy a 40% share in the casino.
Richard Zussman, a managing partner of Southfield-based Jaffe, Raitt, Heuer & Weiss P.C., who represents EIG, said the gaming board's decision "creates great concern about whether the rug would be pulled out" from under his clients. The deal with EIC requires regulatory approval from the gaming board and approval from the city of Detroit.
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