June 28, 2010
The Michigan Gaming Control Board convened a special Board meeting to rule on a transfer of interest application brought for approval by attorneys for Greektown L.L.C.
The Board approved the request of the application for transfer of interest in Greektown Casino, L.L.C., and also approved the eligibility, suitability, and qualification of certain key persons of Greektown Casino, L.L.C. and related request for institutional investor waivers, debt transaction approval, and supplier-licensing exemptions.
Board member Mike Watza summed up the Board's decision with his opinion,
"Interestingly, although we raised concerns about various characteristics of the plan at our last meeting and encouraged input from interested parties, we have received a wealth of information in support of the plan but virtually nothing in opposition to the plan… "That being the case, we are left to assume that there is no formal objection to the planned transfer of interest itself, not withstanding those here before us today expressing orally, displeasure with the results of the plan. The distinction is an important one. Individual members of this board, and perhaps the board in its entirety, are also not happy with the results of the plan to the extent it divests the Tribe, the originator of this Casino, of its interest in same"…
"However, our personal disappointment in the result does not rise to the level of a legal or factual reason for denying approval of this plan under the law and in the interest of all the people of the State of Michigan"… "As we are advised, this plan provides the maximum financial relief for the creditors above any other plan submitted in bankruptcy and at the same time assures a high level of regulation and protection for the casino itself, its customers and the People of the State of Michigan and the City of Detroit."
The Board chair Barbara Rom, stated: "The Tribe had an advantage during the bankruptcy proceeding of exclusivity to file their own plan but failed to act on it."
