Aladdin Gaming's bank debt has been slowly growing stronger, inching up about 15 points over the last year. The loan was quoted in the 93-96 range last week compared to the high 70s to low 80s range, where it was quoted at this time last year, according to Mark It/LoanX. No trades in the name could be confirmed. The company is still wading through its bankruptcy process, but one trader speculated that a deal to sell Aladdin's casino was nearing completion, causing the loan to tick up.
The bankruptcy court approved the sale of Aladdin to a group of investors under the name OpBiz last June. This group is reportedly a partnership that includes Starwood Hotels & Resorts Worldwide, Bay Harbor Management and Robert Earl, ceo of Planet Hollywood International. That deal provides for $510 million in new notes to be distributed to lenders. Aladdin had approximately $435 million under its pre-petition credit facility when it filed for bankruptcy in September 2001. The Bank of Nova Scotia is the administrative agent for the credit. Calls to Aladdin officials, including Tom Lettero, Aladdin cfo, and counsel representing the company were not returned by press time.