|ALADDIN FACES CASH SHORTFALL
Tuesday, November 14, 2000
By DAVE BERNS
lasvegas.com GAMING WIRE
LAS VEGAS - The three-month-old Aladdin may not
have enough money
to fund the company's operations, as well as future principal and interest
payments, according to a Tuesday filing with the federal Securities and
During the third quarter ended Sept. 30, the Strip's newest
megaresort, which opened Aug. 18 at a cost of $1.4 billion, reported
a net loss of $40.2 million against gross revenues of $40.6 million.
The company is seeking additional sources of financing,
through additional bank borrowing or debt or equity financing.
"However, there there can be no assurance that the company
able to secure alternative sources of financing, or if able to do so,
that such financing will be sufficient to meet the company's
anticipated needs," according to the filing.
As of Thursday, the company had unrestricted funds of
about $10.3 million.
Casino revenue represented 48 percent of gross revenue;
percent; food and beverage, 21 percent; and entertainment and other
revenue, 4 percent.
The property generated casino revenues of $19.4, with $11
from slot operations, $8.2 million from table games and $200,000 from
other sources of gaming revenue.
The casino's high-end London Club $4.0 million of casino
with $3.1 million from table games and $900,000 from slot operations.
On the hotel side, the Aladdin experienced hotel occupancy
percent at an average daily rate of $130 during the 44-day operating
The property did not book any substantial convention groups
October, 2000. The net loss for the quarter was $40.2 million
inclusive of pre-opening expenses totaling $19.2 million.
The Aladdin is privately held, with Aladdin Gaming LLC
Clubs PLC owning the bulk of the property, but the company filed the
SEC report because it was financed with public debt.
Phone: (702) 383-0478
Fax: (702) 380-4590