EDMONTON — Gateway Casinos and Entertainment, which owns the Baccarat and Palace Casinos in Edmonton, had its ratings lowered to negative Friday by Moody’s, which said without a significant improvement in operating results or a meaningful equity contribution, the company’s capital structure is not sustainable. “(It) may require some form of restructuring that involves a level of impairment,” Moody’s said in a release. Burnaby, B.C.-based Gateway is struggling with continuation of significant leverage, earnings challenges related to weak gaming demand trends, slower than expected ramp-up of its Grand Villa Burnaby expansion, and heightened competition among existing casino operators, Moody’s said.These factors will continue to challenge the company’s ability to meet the minimum EBITDA requirement in its bank covenants, and the total debt/EBITDA test that begins in March 2010, it added.
1 comment:
Will they be asking for Bailout money like GM and others.
Hard to have any sympathy for this firm given their plundering of the consumers.
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