As reported in Issue 1 of the Michigan Gaming Newsletter dated January 18, Greektown Casino announced that it received a proposal for acquisition from Athens Acquisitions LLC, an entity owned by Daniel Gilbert. In connection with this development on Friday, February 8, 2013, Athens Acquisition, LLC (“Athens”) filed documentation with the Securities and Exchange Commission indicating that the company had acquired 76.8% of the voting securities in Greektown Superholdings, Inc. (“Greektown”), the parent company of Greektown Casino.  Athens is owned by Dan Gilbert, the founder and chairman of Quicken Loans.

In 2010, Gilbert moved the headquarters of Quicken Loans to downtown Detroit and began several initiative aimed to revitalize the downtown area, including acquiring several pieces of real estate. Prior to focusing his business efforts in Detroit, Gilbert partnered with Caesars Entertainment Corporation to develop two Horseshoe brand casinos in Ohio. Gilbert is also the majority owner of the Cleveland Cavaliers.

On January 30, 2013, Greektown issued a press release stating that it formed a Special Committee of the Board of Directors and had retained Lazar Freres & Co. as its financial advisors and Sullivan & Cromwell, LLP as its special counsel to evaluate the Athens proposal. The Special Committee urged the Company’s shareholders not to take any action until the Special Committee has had the opportunity to fully evaluate the Athens correspondence and the Company’s other strategic alternatives. The press release, as contained in the company’s SEC filing on the matter, can be accessed here.

The Michigan Gaming Control Board, which has regulatory authority over Greektown Casino, is charged with review transfer of ownership matters.  In addition to approval from the Michigan Gaming Control Board, Greektown Casino must also comply with its Development Agreement it has with the City of Detroit. 

In other Greektown-related news, it was reported on January 31, 2013 that Mr. George Boyer announced his resignation as Chairman of the Board. His resignation was effective February 11, 2013.  According to the filing Mr. Boyer will remain associated with Greektown Superholdings acting as the Chairman Emeritus of the Company’s Board of Directors.

 

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