Discussion in 'Casino Industry & Development' started by Molder66, Dec 15, 2014.
Just saw this tweet from vital
CET has been trying to dump Rio forever. And with their cashflow problems I'm sure there was a fire sale on it. Why anyone would think the WSOP is owned by Rio is silly to me. CET bought out the Horseshoe to lay claim to it. They just set it up at Rio.
Hope this does not mess up our reservation next week!
Glad I switched my reservation to Harrah's then.
Why? It would take probably three months minimum (and it's usually longer) for the sale to close. If the bankruptcy is contentious, the sale could get hung up in court fights, too.
Well, as Robert DeNiro would say......"looks like i'm walking".
I was reading a news article today saying that the CET "bankruptcy" is just a pre-arranged business move and to not expect any closures or major changes in the near future. There was a sidebar items about layoffs being few and evenly-distributed amongst the properties.
Hopefully if it is sold it would breathe some life and energy into the place.
Purchase the naming rights, rename it the Stardust, bring back the vintage signage, remodel the casino and install the biggest sportsbook in Vegas.
There are creditors fighting the bankruptcy plan. There should be enough that use to make this messy. It probably won't affect operations immediately but selling of assets will be scrutinized.
Can CET be forced by the bankruptcy court to sell off assets in order to pay off its creditors? Like could they be made to sell Rio, Planet Hollywood, etc?
Sure. Especially if it is put into receivership, which some big creditors are pushing for right now. But even for the receiver it will be complicated because most of these assets are specifically pledged to certain loans but then there are cross-guarantees at the parent level as well. Ultimately though the receiver has a lot of power to decide on their own.
Yep definitely complicated with their structure. In simple terms, The Rio may be worth $x which helps creditor A if liquidated but, creditor B may have only Rio as collateral on its loan so it will not let Creditor A force a liquidation or Creditor B may be further up the food chain in terms of seniority so any sale proceeds would only go to Creditor B leaving nothing for Creditor A, C, D, E....
It's definitely more complicated than you and me with mortgage and a credit card if things go south.
People have been announcing The Rio as for sale and even sold more than a few times over the years... I'd wait until there was something actually official,
That's how Hooter's changed hands. There's another one like that - maybe the Riv?
Riviera (both the property and the mgmt company) went to its creditors after bankruptcy a few years ago. I think my brother's old firm had some part in that, not his group or area of focus but I remember him mentioning they were involved back then.
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