Las Vegas Hard Rock aims to avoid foreclosure

Volanta

Firm’s future depends on restructuring debt and accessing funds

Titulo

Las Vegas Hard Rock aims to avoid foreclosure


Archivo de imagen (URL)

Epígrafe

Bref, a division of Brookfield Asset Management, owns the entertainment resort, which is managed by a subsidiary of Las Vegas-based Warner Gaming. Another Warner subsidiary, Sioux City Entertainment, is developing the Hard Rock Hotel & Casino Sioux City.
United States
 | 21/01/2014

Sumario

(US).- Hard Rock Hotel & Casino Las Vegas is seeking options to avoid missing a March mortgage interest payment. Failure to pay could jeopardize the future of the company that is the owner of the venue - Bref - and could lead to foreclosure.

Cuerpo

Bref, a division of Brookfield Asset Management, owns the entertainment resort, which is managed by a subsidiary of Las Vegas-based Warner Gaming. Another Warner subsidiary, Sioux City Entertainment, is developing the Hard Rock Hotel & Casino Sioux City.  Construction on the us$128.5 million project in downtown Sioux City is scheduled for completion late this summer.

Affiliates of Brookfield Financial formed Bref in February 2011 to buy the interests of HRHH JV Junior Mezz LLC, which indirectly owned the Hard Rock Hotel & Casino Las Vegas, according to Mergers & Acquisitions. HRHH’s interests were assigned to Bref in lieu of foreclosure after HRHH had defaulted on a mortgage loan provided by Brookfield.

"In March 2011, the company entered into a second mortgage loan agreement with Brookfield Financial for usus$30 million, pledging land, buildings, improvements, equipment and fixtures as collateral. The mortgage matures on March 1, 2018 and has an interest rate of 15 percent, payable at maturity."

"In a Dec. 23 filing with the U.S. Securities and Exchange Commission, Bref raised substantial doubt about the company’s ability to survive, anticipating that it will not have the funds to meet a payment-in-kind interest installment due on March 1."

"Bref’s ability to continue depends on restructuring debt, obtaining additional financing or securing lender approval to use available cash reserves to make the interest payment. If the company misses the payment, the lender has the option to accelerate the loan, which could result in foreclosure."

Fuente

Yogonet.com