Legal notice in the USA Today. Includes a bunch of casinos like Ballys, Harrahs and Flamingo....
I know a woman who has worked as a controller for Caesar's for 25 years and she took early retirement, things are such a mess. They had an open check book policy for a couple of years and kept hiring consultants to try and fix things, which she said caused more of a mess. Folding was inevitable.
The two private equity firms that bought the hotels and then loaded on the debt. I believe this was a pre planned bankruptcy and it's just a bunch of Wall Street types doing some finacial engineering.
They never went bankrupt....
and they were WAY more ethical. Sadly, this is not intended as humor.
The leveraged buyout was a good idea, their timing was atrocious. The chapter 11 filing is unlikely to result in MGM or anyone else acquiring the properties. It is likely to stiff the unsecured creditors and result in the secured creditors taking an ownership interest in the properties. That will be followed by an IPO when market conditions are favorable.
The list of bad investments along the LV strip is not a short one, City Center, Cosmopolitan, Echelon and Fontainbleau all qualify. The Aria was projected to generated $250 per night on a RevPAR (Revenue Per Available Room basis. I have stayed there for $79/night. Las Vegas presently has too much inventory to justify additional investment. I think the Resorts World construction on what was to the Echelon site is likely to be a disaster. The problem is not only hotel rooms, but alternative lodging choices like timeshares and private residences available in properties like the Venetian and Wynn. I am avoiding casino stocks at this point.Filing bankruptcy then stifffed her lawyer.
Not sure if that was kinda awesome or not, considering there isn't really anything awesome about that story at all.
They spent $30 Billion to take the company private. Not a great decision. They are victims
http://dealbook.nytimes.com/2015/01/15/caesars-unit-files-for-chapter-11-bankruptcy-protection/?_r=0
For the sake of the investors, I hope you are right. Las Vegas still has an oversupply of lodging and hoteliers are not getting the daily rates they used to justify their investments. Additional supply is not going help the situation. As far clients coming from overseas, I don't see how there would be enough to justify the investment.
52 week high and low.. Many companies do it.. You never know it could be like the Mgm stock.. (I think that's the one that split and paid mass dividends.. late 2000's.. 2011?
someone may know the details better I just read and learn and live it.. Im not the best messenger
wink
Us "slant eyes" take the fucking cake. The average Chinese gambler will outspend the typical American 10-1.
I used to travel with a bunch of Koreans and Vietnamese to help "fill up the plane" they would send for us. It was amazing to see a woman that worked at a nail salon or a guy who worked as a cook scrounge up ten or twenty grand to go gamble, while most of my white friends who had decent ($100K or more) jobs would bring less than a grand to gamble with.
Vegas was built by gamblers, the old mobsters understood that, "New Vegas" run by the corporations, and staffed by MBA's seem to have forgotten that and now concentrate on "multiple streams of revenue"
Like someone else on this thread opined, you never saw any of the old mob joints filing for Chapter 11. I miss Old Las Vegas.
http://www.amazon.com/Winner-Takes-All-Kerkorian-Loveman/dp/1401309763
It gives some background of Messrs. Kerkorian, Loveman and Wynn. The casinos have been less than scrupulous with some of the high rollers. Shadow Creek Golf Course was built based upon losses from a Japanese investment manager that gamble away $40 million of his clients' money. Caesar's allowed an alcoholic to lose $127 million paying blackjack after Steve Wynn refused to let him play at his casinos. The comps offered to gamers now are insignificant, but as gamblers are making up a smaller part of Las Vegas business. The average amount gambled by the average Las Vegas visitor is about the same as 20 years ago because most visitors either don't gamble or gamble very littleYou really think her lawyer took the case to get paid? Really? He knew his chances of getting 'paid' were slim and none.
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