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Casino operators try to beat the burden
7 September 2010
By Howard Stutz
LAS VEGAS, Nevada -- With the bankruptcy reorganizations of Station Casinos and Herbst Gaming winding down, analysts and industry observers have turned their focus toward other casino operators.
Speculation abounds on whether companies will follow Station and Herbst into filing bankruptcy-court-administered plans of reorganization to wipe cumbersome debt loads off the books and create more manageable businesses.
Others believe corporate gaming executives have done enough to restructure long-term debt. Some of the largest casino operators negotiated maturity-date extensions of their obligations through a combination of adding new debt, increasing interest rates, or taking on new partners and investors.
Smaller, independent casinos have debt-management issues, too. The operators of the Riviera filed Chapter 11 bankruptcy in July. M Resort's primary lender held a private auction to sell $700 million of the property's debt.
"Most of the large-cap operators bought themselves some time," Wells Fargo Securities gaming analyst Dennis Farrell Jr. said. "With the one-off properties, we're seeing a lot of debt trading hands with people building positions in order to take control."
Read entire article here.
7 September 2010
By Howard Stutz
LAS VEGAS, Nevada -- With the bankruptcy reorganizations of Station Casinos and Herbst Gaming winding down, analysts and industry observers have turned their focus toward other casino operators.
Speculation abounds on whether companies will follow Station and Herbst into filing bankruptcy-court-administered plans of reorganization to wipe cumbersome debt loads off the books and create more manageable businesses.
Others believe corporate gaming executives have done enough to restructure long-term debt. Some of the largest casino operators negotiated maturity-date extensions of their obligations through a combination of adding new debt, increasing interest rates, or taking on new partners and investors.
Smaller, independent casinos have debt-management issues, too. The operators of the Riviera filed Chapter 11 bankruptcy in July. M Resort's primary lender held a private auction to sell $700 million of the property's debt.
"Most of the large-cap operators bought themselves some time," Wells Fargo Securities gaming analyst Dennis Farrell Jr. said. "With the one-off properties, we're seeing a lot of debt trading hands with people building positions in order to take control."
Read entire article here.
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