"Brennan said the lawsuit doesn't "pass the smell test," because the casino waited 20 months to try to collect on the gambling debts. He said that proves there was an agreement with previous owners to delay settling debts with Papas."
Copied from an article by: Christine MacDonald / The Detroit News
Detroit --Greektown Casino is suing one of its original investors, Dimitrios "Jim" Papas, for $7 million, including at least $1.5 million in unpaid gambling debts.
The gaming hall, which recently exited bankruptcy, claimed in a suit filed Friday that Papas owes $4 million and has refused to pay.
The casino claims it tried to collect gambling debts from his checking account in December but failed because of "insufficient funds," according to the Wayne County Circuit Court suit.
The casino seeks another $3 million in damages, but Papas says he's the one owed money.
"They can file lawsuits for $150 million but they aren't going to get anything," said Papas, who owns the restaurant Pegasus and is the landlord of Mosaic, which is owned by his daughter. "It's absolutely baseless."
Papas said the old and new Greektown owners owe him about $10 million to $12 million that he can't recover because of the bankruptcy, his attorney Henry Brennan said.
Some of the debt stems from his sale of his share of the casino in 2000, and the old owners "misled" him by persuading him not to settle before the bankruptcy, Brennan said.
Many of the original local investors lost their investment in Greektown when it went into bankruptcy in May 2008.
Douglas Minke, a Greektown attorney, had no comment Monday.
Michigan prohibits investors from gambling at casinos, but Pappas' line of credit for wagering was established in December 2000 after he sold his stake in the facility.
He did so after state gambling regulators didn't grant him and partner Ted Gatzaros a license. The lawsuit alleges Papas owes:
• $2 million from a promissory note he signed in 2005 to cover unspecified debts. He agreed to repay the money in March 2009 plus 6 percent interest, another $551,000, according to the suit.
• $1.5 million the casino loaned Papas for gambling in March and April 2008. The casino claims it tried to recoup the money from Papas' checking account in December, but funds weren't there to cover the debt.
Brennan said the lawsuit doesn't "pass the smell test," because the casino waited 20 months to try to collect on the gambling debts. He said that proves there was an agreement with previous owners to delay settling debts with Papas.
The casino is now jointly owned by a public company called Greektown Superholdings Inc. and its private counterpart Greektown Newco Sub Inc. They have raised $200 million in equity by selling shares of preferred stock at $100 per share.
From The Detroit News
Copied from an article by: Christine MacDonald / The Detroit News
Detroit --Greektown Casino is suing one of its original investors, Dimitrios "Jim" Papas, for $7 million, including at least $1.5 million in unpaid gambling debts.
The gaming hall, which recently exited bankruptcy, claimed in a suit filed Friday that Papas owes $4 million and has refused to pay.
The casino claims it tried to collect gambling debts from his checking account in December but failed because of "insufficient funds," according to the Wayne County Circuit Court suit.
The casino seeks another $3 million in damages, but Papas says he's the one owed money.
"They can file lawsuits for $150 million but they aren't going to get anything," said Papas, who owns the restaurant Pegasus and is the landlord of Mosaic, which is owned by his daughter. "It's absolutely baseless."
Papas said the old and new Greektown owners owe him about $10 million to $12 million that he can't recover because of the bankruptcy, his attorney Henry Brennan said.
Some of the debt stems from his sale of his share of the casino in 2000, and the old owners "misled" him by persuading him not to settle before the bankruptcy, Brennan said.
Many of the original local investors lost their investment in Greektown when it went into bankruptcy in May 2008.
Douglas Minke, a Greektown attorney, had no comment Monday.
Michigan prohibits investors from gambling at casinos, but Pappas' line of credit for wagering was established in December 2000 after he sold his stake in the facility.
He did so after state gambling regulators didn't grant him and partner Ted Gatzaros a license. The lawsuit alleges Papas owes:
• $2 million from a promissory note he signed in 2005 to cover unspecified debts. He agreed to repay the money in March 2009 plus 6 percent interest, another $551,000, according to the suit.
• $1.5 million the casino loaned Papas for gambling in March and April 2008. The casino claims it tried to recoup the money from Papas' checking account in December, but funds weren't there to cover the debt.
Brennan said the lawsuit doesn't "pass the smell test," because the casino waited 20 months to try to collect on the gambling debts. He said that proves there was an agreement with previous owners to delay settling debts with Papas.
The casino is now jointly owned by a public company called Greektown Superholdings Inc. and its private counterpart Greektown Newco Sub Inc. They have raised $200 million in equity by selling shares of preferred stock at $100 per share.
From The Detroit News
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