Monday, July 14, 2008


It's still beyond me to parse much more than what is in the headlines over the past/present and future of the Pittsburgh casino license. Still waiting for some of the shrapnel to fall to earth to try and figure out where we are.

But I was wondering what Don Barden has collateralized his now semi-defaulted bridge loan of $200 million with. I had presumed it was some of his other casino operations. It couldn't have been his Las Vegas operation. Barden had put his flagship Las Vegas operation: Fitzgeralds up as collateral for the ongoing project. He simultaneously announced the operation was for sale to make that commitment liquid.

But.. this just in. Looks like the deal is off and Fitzgeralds has been pulled off the market. So I take it's not at risk here any more, but I could be wrong about that.

There has to be something at risk here? If the license gets pulled, you have to imagine that most of the $200 million already spent somehow will be a complete write down. At one point there was talk of loans to be collateralized by Detroit municipal pension funds. Is any of that risk still in play? I dunno, just questions I have.


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