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Macau’s Studio City Will Default on Debt, Warns Analyst

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Macau’s<span id="more-22455"></span> Studio City Will Default on Debt, Warns Analyst

Studio City Macau: Despite its numerous non-gaming tourist attractions it’s failing woefully to attract the mass market crowds.

Studio City Macau, Lawrence Ho and James Packer’s $4.5 billion casino that is integrated on the Cotai Strip is in trouble and could default on the $1.41 billion loan utilized to complete the construction of this hotel.

That’s the word from rating agency Standard and Poor’s Financial Services, which this week issued a negative perspective for the resort’s bonds, off the back of a 42.5 percent slide in their value.

Macau’s first ever television and movie-themed resort opened in October 2015, with Packer’s girlfriend Mariah Carey headlining the night that is opening since the likes of Robert De Nero and Leonardo DiCaprio mingled on the list of crowd. It even had its very own night that is opening, The Audition, a short film directed by Martin Scorsese and starring De Nero, DiCaprio and Brad Pitt.

Packer called it the ‘coolest 15 minutes ever made,’ but, with an $80 million price tag, it could equally be described as probably the most expensive advertisement ever made.

Brand New Concept Doesn’t Drive Crowds

But for all the glitz, Studio City was conceived in a markedly different climate that is economic before Chinese President Xi Jinping’s anti-corruption drive halted the region’s success tale and sent profits tumbling for 26 straight months.

Studio City went big on non-gaming amenities, positioning itself as a non-VIP gaming location so that you can woo China’s burgeoning class that is middle.

This has everything from television and movie production facilities to a Batman themed flight-simulator that is 4-D coaster ride and a figure-eight Ferris wheel, but because of a slowing Chinese economy, visitor numbers to Macau are falling and the hordes of middle classes have failed to materialize.

Melco Distances Itself

Melco Crown owns a 60 percent stake in the home, while US hedge funds Silver Point Capital and Oaktree Capital own a 40 percent stake. Bloomberg reported this that Melco Crown has sought to distance itself from any kind of rescue package for the casino week.

‘Studio City Casino Macau is within a entirely split credit group and its particular debt is non-recourse to Melco Crown Entertainment Limited. […] Investors must not assume that Melco Crown Entertainment Limited will give you any support that is financial Studio City Casino Macau or that it would part of for Studio City Casino Macau,’ said a Melco Representative.

There is speculation that that Melco is wanting to put the ramp up the hedge funds them out for a good price, and that the negative rating from Standard and Poor’s will strengthen its position because it wants to buy.

Duterte Takes Shock U-turn on Online Gambling

‘Gamble until you die. I do not necessarily care,’ said Philippine President Duterte Wednesday, clearly in a far more mood that is forgiving. (Image: rapeller.com)

Philippine President Rodrigo Duterte’s hardline crackdown on online gambling took a twist that is unexpected this week.

On Tuesday the government’s gambling operator-regulator, PAGCOR, announced that it was ready to license online gambling firms that targeted ‘non-locals’ and that it was at the entire process of ‘readying application forms.’

‘We don’t know yet how saleable it is; there could be no takers,’ PAGCOR Andrea that is chief Domingo to Reuters.’Or there could be numerous applicants,’ she added brightly.

PAGCOR hopes that the new licenses might offset some of the revenue lost by Duterte’s systematic dismantling regarding the nation’s online gambling giant, Philweb. Until recently, Philweb operated 299 online gambling boutique cafés throughout the Philippines, which offered online video poker and slots via roughly 8,000 terminals.

Final year the business’s operations contributed around $12.2 million in taxes to the federal government.

Zero-tolerance

Duterte swept to power in June on an agenda that promised to eliminate criminal activity and drugs. Literally. The president has leant their help to vigilante death squads that carry out the extra-judicial killings of criminals and drug that is habitual with impunity.

When sworn in, he immediately set his sights on the Philippine online gambling industry, plus in particular Philweb and its chairman, the billionaire Robert Ongpin.

Ongpin was agent of the ‘oligarchs,’ which he believed were ’embedded in government’ and practiced ‘influence peddling.’ Meanwhile, said Duterte, online gambling ‘had to avoid’ because too many Filipinos had been choosing to gamble alternatively of working for the living. It appeared that PAGCOR was taken totally by surprise by the announcement.

Restoration

the month Philweb was forced to announce it would wind down its operations, due to the non-renewal of its license by PAGCOR. Ongpin stepped straight down as president associated with the business and, as a bid that is last-ditch approval, wanted to transfer almost all of his majority stake within the company to PAGCOR, in an effort to truly save the business and its own 6,000 employees. PAGCOR had been forced to refuse.

But on Wednesday, Duterte was clearly in a far more tolerant mood.

‘Pay the correct taxes… Gamble and soon you die. I never really care,’ he announced magnanimously.

Duterte happens to be ready to restore gambling that is online ‘taxes are correctly collected and additionally they [online gambling cafes] are situated or positioned in districts where gambling is allowed, which means to say, not within the church distance or schools.’

‘ I became angry because perhaps the youth are gambling and there was clearly no chance of collecting the proper fees,’ he admitted.

Whether this means he’s ready to allow Philweb to continue its operations as before is currently unclear.

Indiana Casino Union Does What Trump Taj Mahal Workers Couldn’t: Hits New Contract with Majestic Celebrity Riverboats

Indiana Governor Mike Pence, the current GOP vice-presidential contender, has put his state on the map for economic gains and development during his administration. Now a new casino union contract in the Hoosier State is additionally showing up its sibling chapter in Atlantic City, having effectively negotiated for benefits, where its brethren failed.

The Indiana Unite Here casino union has successfully bargained for a contract that is new the 2 Majestic Star riverboats in Gary, a stark comparison through the union’s efforts in Atlantic City, which failed. (Image: Unite Here/youtube.com)

Indiana’s Unite Here casino union, representing chefs, wait staff, and housekeepers at the two Majestic Star riverboats in Gary, has reached a brand new agreement with the gambling operator. On August 19, the 2 edges officially finalized off for a contract that increases wages over the next couple of years, while keeping the health that is current programs being afforded to union members.

The deal operates through 2018.

Unite Here Local 1 spokesperson Noah Carson-Nelson told the Chicago Tribune, ‘Our people are content. The people were excited that it was settled fairly quickly and that it includes raises and exactly the same health insurance.’

The Majestic Star casinos sit next to one another in Lake Michigan, about 30 kilometers southeast of downtown Chicago.

Regional 1’s parent union, Unite Here, is the exact same company that unsuccessfully proceeded hit during the Trump Taj Mahal in Atlantic City earlier in the day in the summer time. As a result, billionaire owner Carl Icahn announced that the casino will likely be forever shutting on October 10.

The Trump Factor

Formerly referred to as Trump Casino, Majestic Star II was renamed after Trump Entertainment Resorts offered the property to Majestic in 2005 for $253 million.

The purchase was element of Trump Hotels & Casino Resorts (THCR) filing for Chapter 11 bankruptcy security in 2004. The company emerged from liquidation under the Trump that is new Entertainment name in 2005.

Trump’s record in Atlantic City is certainly questionable. But in Indiana, Trump’s riverboat was decidedly lucrative. Throughout the 11 years since Majestic acquired the casino that is floating it’s never won as much money because it did whenever Trump was the financial admiral of the ship.

In 2004, total wins eclipsed $140 million. In 2015, the Majestic Star II taken in simply half of that figure.

The Majestic Stars are two of 10 riverboat casinos in Indiana. The Hoosier State normally home to your French Lick Resort Casino, the only land-based gambling venue there, plus two racinos that offer slots and electronic table gaming.

Marked Market Differences Between Two States

Back east in Atlantic City, Unite Here Local 54 had been also fighting for higher wages and health insurance coverage at the Trump Taj Mahal. But the bankruptcy process already underway whenever Carl Icahn purchased the casino allowed the billionaire to temporarily suspend pension and healthcare benefits as he worked to upright the casino’s serious situation that is financial.

But Icahn, who was simply reportedly losing $100 million on the venture, stated he needed more time before restoring benefits. Employees moved off the task in disgust, and Icahn called their bluff in a move that ultimately caused both edges to lose.

The market is quite different in northwest Indiana than in Atlantic City. When the Taj Mahal closes its doors in October, it becomes the fifth casino to shutter down since 2014 in New Jersey.

The Blue Chip Casino and Hotel in Michigan City, Indiana also recently negotiated successfully with Unite Here Local 1. Ameristar Casino resort did as well, albeit after having a lengthy and process that is tedious.

‘we are pleased to move on, and happy in an equitable manner,’ Majestic Star General Manager Barry Cregan said of the new contract that we did it.

So why would small Indiana gaming union find more success along with its manager than in the much larger Atlantic City market? Each month, and the union’s demands would only drive those losses further into the muck because the Taj was already losing millions. In Indiana, while not thriving like they may have been more than a ten years ago, casinos are apparently still making an adequate amount of a revenue to help make union benefits a worthwhile investment.

Paddy Power Betfair Reports £47.5 Million Loss As A Result Of Costs of Merger

Breon Corcoran, Paddy Power Betfair CEO, said that the company would not further rule out consolidation if the best opportunity arose. (Image: Business Post sunday)

Paddy Power Betfair has reported running losings of £47.5 million ($62.6 million) for the first half of 2016 when compared with profits of £106.5 million ($140.5) for the corresponding period of 2015.

CEO Breon Corcoran this week attributed the losses https://myfreepokies.com/pelican-pete/ to one-off costs related to your merger involving the two betting powerhouses, amounting to £195 million ($257 million) in total. Paddy energy and Betfair agreed terms of their £5 billion ($6.5 billion) merger in September year that is last the offer was only finalized on February 2, 2016.

Thus, short-term losses incurred during through integration, including some £29 million ($38.2) in advisory fees alone, are anticipated to be handsomely offset by cost saving synergies regarding the newly combined company further down the road.

In reality, Paddy Power Betfair has upped its estimate of future cost saving from £50 million ($65 million) per annum by 2018 to £65 million ($85.7 million) per from next year year.

A lot of those savings have come from job losses, with 650 of the combined company’s 7,200-strong workforce having found themselves surplus to needs after the merger.

Revenue Up 18 Percent

‘People have actually been really diligent, there’s been a lot that is awful of work done, and promptly,’ said Corcoran of the integration work. ‘Paddy Power Betfair has suffered momentum that is good a period of considerable change.’

Corcoran also pointed to an 18 percent rise in revenue for the time scale, to £759 million ($1 billion), also double-digit growth across all four of its core divisions. Discounting merger costs, would have reported underlying earnings of £181 million ($238 million), Corcoran said.

Online revenue was up 20 percent at £440 million ($580 million), while Paddy Power’s land-based bookmaking stores recorded a 12 per cent rise in revenues to £147 million ($193 million). The company’s US and Australian operations also reported growth.

More Consolidation Available

‘The restructuring is now largely complete as well as the merger synergies are being delivered in front of schedule,’ said Corcoran. ‘We are creating a world class operation by exploiting the assets that are unique abilities of each legacy business, particularly in the key functions of technology, marketing and trading.

‘While our industry stays highly competitive and is exposed to the prevailing economic and regulatory surroundings, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, lucrative growth.’

Corcoran additionally refused to rule out of the possibility of more consolidation. If the right asset came up during the right price his company would be well placed to get it, he said, nevertheless the moment he was focusing on the integration process.

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