At a time when company owners are either booted by investors for letting their companies fall into the hands of bottom-feeding creditors or competitors, these epic bailouts look like throwbacks to another era.
Cut off from bank loans and traditional financing during its early days, the casino industry relied on the wealth of a small group of insiders who understood its peculiarities.
The Fertittas, who learned the business from their father, have always viewed their industry as a long-term growth opportunity and chafed under the quarterly profit-driven demands of Wall Street.
It’s up to bondholders to decide whether the Fertittas know more about their business than anyone else and should be running the show.
If the economy doesn’t recover as Station expects it will, that $244 million, just like Adelson’s billion-dollar investment, will disappear.
Analyst Barbara Cappaert of bond research firm KDP Investment Advisors says such cash infusions by owners are unusual in this downturn. Many struggling companies have offered bondholders discounted notes to reduce interest costs but have put no new cash, as equity, into their companies. Read The Full Article Here At LasVegasSun.com
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