With huge debts of around $1billion, the Resorts World Catskills Casino is in danger of being forced to go into bankruptcy, unless it can find a way of paying off those debts. However, that does look like mission impossible, based on their current income levels.
In fact, last quarter alone the casino made a loss, and a large one too, of some $36 million, and the future therefore doesn’t look good for the financial viability of that casino resort if the current financial climate continues for much longer.
However, all is not lost for that casino, for one of its current majority shareholders is Genting Malaysia, and if there is one thing that company is not short of, it’s cash.
Genting Malaysia and their investment company Kien Huat Realty are eager to take control of the casino, for they are prepared to pump in however much cash is required to get the casino back on track, and that is looking like something they will very soon be given the opportunity of doing.
The only way that they are going to be able to achieve that and will be prepared to do so is by taking the property private and incorporating it into its casino portfolio.
Having just made an offer to purchase all shares and equity in that venue, and being prepared to pay $9.74 per share too, it probably isn’t going to be very long before Genting Malaysia take possession of the company, when you consider that the share price yesterday was just $8.35 per share.
The total loss that the casino has made to date this year is some $73.5 million but with the experience and financial resources that Genting can and will offered if their offer is accepted the long-term future of the casino will be assured.
