International casino operator, London Clubs International (LCI) has secured a release from its financial obligations to the troubled Aladdin Casino in Las Vegas.

Under the Keep Well Agreement and the Completion and Performance Guarantee with the Aladdin Bank Syndicate, LCI has escaped paying $150m in exchange for a five per cent equity stake in the company once its shares reach 50p. LCI has also agreed to pay the Aladdin Bank Syndicate $15m in seven year's time.

The deal is good news for the company, which owns a 40 per cent stake in Aladdin in a joint-venture partnership with Sommer Trust. Shares in LCI plunged to around 6p in September amid fears that the company might be forced into receivership if talks with its banks failed. The share price is on the rise again - closing at 28.25p yesterday.

LCI will continue to work with the Aladdin Bank Syndicate in the operation of the Aladdin Resort and Casino and is in talks to with its UK lenders regarding the ongoing debt structure.

Meanwhile work has started on a casino in Brighton, which is due to open in early 2002.