Credit-default swaps, some of those financial instruments that have played hob with the U.S. economy, are making a cameo appearance in the tortured saga of Station Casinos. If you insured Station’s debt, that insurance is worth more than the paper your CDS is printed upon — but not by much.
Congratulations, MGM Mirage. Your probable rescuer is a bottom-feeder who’s preparing to root around amidst the dregs of the banking industry. However, with CityCenter as much as $3.8 billion shy of the finish line, MGM isn’t in a position be picky about going into business with the K-Mart of casino owners.
Rivers Casino, the former Majestic Star, has some CityCenter-style construction problems. This project has been so vexed and hexed that nothing comes as a surprise anymore.
Interesting business model. Halfway around the globe, Melco Crown Entertainment‘s got a lot riding on its City of Dreams megaresort. To bring back the whales, it’s essentially promising that they can welsh on their markers with impunity. Or, as the company puts it, “Aggressive enforcement actions against a customer [may] unduly alienate the customer and cause the customer to cease playing at our casinos.” And, gosh knows, nobody wants to alienate a deadbeat debtor.
