Thursday, June 03, 2010

Things that make you go hmmm

Notice the change in tone in the full story in the PG today on the casino vs. what was teased yesterday

Some of quotes in there show someone out there is not mincing words:  
"the moves failed to impress one New York rating agency"

"an update released hours after the Rivers announcement, Standard & Poor's downgraded the rating of casino affiliate Holdings Gaming Borrower from CCC to SD, or selective default. It marked the third downgrade since the casino opened in last August."

"Standard & Poor's stated it viewed the buy back of some of the senior debt and the accompanying restructuring of other obligations as "tantamount to a default," given the "distressed financial condition" of the company."
selective default... tantamount to a default.......  These are pretty serious words coming from folks like that.  What do they know that has not been reported on? And parse even more carefully.. It's the Detroit Pension system that is pumping more money into all of this.  Does that make sense?  I am speculating that for a pension system to be putting more money into such a distressed debt situation it means they are concerned they may lose what investment they already have in the project. 

Why care?  Businesses come and go and it's normal.  I said before that the connections of the casino revenues to a host of other things all has the potential for cascade failure far beyond the North Shore.

1 Comments:

Anonymous R. Oulette said...

Standard & Poor's stated it viewed the buy back of some of the senior debt and the accompanying restructuring of other obligations as "tantamount to a default," given the "distressed financial condition" of the company."

Wednesday, June 16, 2010 5:56:00 AM  

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