CET Pulls Out Of Macau

Looks like any plans CET had in Macau are over (for now.)

 

Puts a tiny dent in the billions they're in the red. Hopefully they can get their properties in the black soon here in the U.S. I don't want to see anyone go out of business.

 

Even if CET filed for bankruptcy, none of their casinos will close. They have well positioned assets. Also their problem is that they're overleveraged, rather than a revenue issue. Their properties generate plenty of cash, they just have to throw so much of their income towards their debt service. If they filed bankruptcy it would be chapter 11 and they would reorganize their debt and be just fine. Chapter 7 (highly unlikely) somebody would step in and buy up all their assets. Either way you won't see any casinos close.

 

Yeah right. C'mon, who here hasn’t promised that they would pull out?

 

Makes you wonder if CET had it's act together and pushed to open a casino in Macau a few years ago how different the company's financial situation would be.

 

I read this the other day and one of the comments on the story really made me laugh

it said "they only managed to lose $140 million in one of the hottest property markets in the world"

they need new management from top to bottom....except for the fact that they are really not trying to properly run a publicly traded company they are now just trying to maneuver the remaining assets to best protect the LBO interest

 

Yeah, thats what really helped Sands and Wynn keep going during the US economic downturn of the last few years.

Though they are "pulling out of Macau", because they blew it originally with the casino license its almost like they were never truly there...

 

Why not sell the only asset that had the potential to add to future earnings!!poke:

Now, after they spin off Planet Hollywood and the onling gaming business, they have no real future / forward looking assets that can help pull them out of the hole they are in. No sources of new income to help pare down that debt (if that is even their real intention). They may want to pull a Stations manuever, and reorganize after off-loading a lot of the debt at pennies on the dollar.

 

the golf course had no future potential

without a gaming concession that they were not going to get the golf course was just a liability and I believe it was costing them a large sum of money per year to maintain and pay taxes on

Macau is not going to give any new gaming licenses any time soon (they seem to understand something the USA does not understand and that is the finality of dollars available to gamble with)

so without the ability to get a gaming license any time soon and billions in debt and paying dearly to maintain a property half way around the world where you have no other interest and facing large amounts of debt coming due soon that it will be harder and harder to refinance for less as interest rates climb the only choice you have is liquidate