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 Exchange Commission.

   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, if needed, 
through additional bank borrowing or debt or equity financing.

   "However, there there can be no assurance that the company will be 
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; hotel, 28 
percent; food and beverage, 21 percent; and entertainment and other 
revenue, 4 percent.

   The property generated casino revenues of $19.4, with $11 million 
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 revenues, 
with $3.1 million from table games and $900,000 from slot operations.
   On the hotel side, the Aladdin experienced hotel occupancy of 77 
percent at an average daily rate of $130 during the 44-day operating 
period.

   The property did not book any substantial convention groups until 
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 and London 
Clubs PLC owning the bulk of the property, but the company filed the 
SEC report because it was financed with public debt.
 

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