Wednesday, May 7, 2003 | 11:16 a.m.
A Los Angeles company competing to purchase the Aladdin hotel-casino out of bankruptcy has filed an objection to plans to convert the Strip property into the Planet Hollywood hotel-casino. A hearing was scheduled on the issue today.
Las Vegas Hotel Casino Investors LLC (LVHC), a subsidiary of Financial Capital Investment Co., owners of the Los Angeles Omni Hotel, filed a motion Tuesday in U.S. Bankruptcy Court in Las Vegas objecting to a plan forwarded by OpBiz LLC, a partnership comprised of Planet Hollywood co-founder Robert Earl, Starwood Hotels and Resorts Worldwide Inc., White Plains, N.Y., and Bay Harbour Management LC, New York.
The OpBiz partnership wants to be installed as the "stalking horse" bidder for the Aladdin with a $635 million package that includes $90 million to transform the property from the Aladdin to a Planet Hollywood-themed resort.
Financial Capital has said it plans to offer a rival bid and revamp the Aladdin into an Asian-themed resort.
In the motion filed Tuesday, LVHC has asked Judge Robert C. Jones to install it as the "stalking horse" bidder and to delay today's hearing to June to enable it to negotiate a purchase agreement with Aladdin LLC and for more time to compare the rival bids.
The motion says LVHC principal Richard Alter is willing to meet the terms of the OpBiz agreement and is offering "materially enhanced terms for the estate."
"Compared to the terms of the OpBiz purchase agreement, LVHC Investors has delivered a substantially improved economic deal for the estate, greater certainty of ultimate closing and a level playing field for competing bidders," the motion says.
LVHC says its offer provides more cash to Aladdin LLC and relieves more of the debt from lenders. It also offers a smaller breakup fee than that offered by OpBiz. The OpBiz deal includes a $5 million breakup fee and a $2.5 million cap on expenses if the deal is not consummated while the LVCH offer includes a $2 million breakup fee and a cap of $1 million on expenses.
The OpBiz offer also requires that its bid be beaten by $17.5 million compared with an overbid requirement of $4 million by LVCH.
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