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ALADDIN GRANTED EXTENSION

Jun 8, 2001 9:49 PM

The Aladdin Hotel & Casino was granted an extension through Tuesday on a payment of $8.7 million that was due on May 29 to make up for the property's failure to generate sufficient cash flow.

The deficiency came about when the Aladdin failed so far this year to generate cash flow equal to $80 million a year, which is required under its debt agreements.

The owners of the Aladdin, the Sommer Family Trust and London Clubs International, have been in negotiations with their bankers about pushing the extension back to July, according to a local news report.

If true, observers see it as good news, the report said, since the banks would only issue such a continuance if they perceived the property to be coming close to reaching its quarterly goals.