Casino and Resort Facility
Transaction Type: Restructuring
Industry: Gaming
Location: Southeast United States
Client: Casino Owners and Investment Bank
Role: Chief Restructuring Officer
Cascade was brought into this company by management while the project was still under construction. Construction and development of the casino had been slowed and there were significant cost overruns associated with the project. Operating revenues were non-existent, yet the company had begun staffing for the opening well in advance of the project completion. The company was incurring significant operating losses while they were still waiting for the construction to be completed.
Because of this, Cascade had to drastically cut staff, raise financing to cover the shortfall and the operating losses, and work with the State gaming authorities to assure them that the casino could be managed in an appropriate manner. Cascade worked to restructure the $250 million in debt, deferring enough of the payments to facilitate the project getting to cash flow breakeven in a reasonable period of time.
All of the restructuring was performed out of court and the casino was eventually sold.