2 weeks ago
Bally's Warns of Going Concern Doubt, Seeks New Funds
Bally's is a company that owns casinos and online gambling businesses.
It borrowed money from lenders, who made rules about how much cash Bally's must keep and how much debt it can have.
Bally's says it might not be able to follow those rules.
That is why it told investors there is big doubt it can keep operating.
The company wants to build a new casino resort in the Bronx, New York.
It hopes to raise more than $500 million to pay for the project.
It has already spent more than $800 million on it.
The loan agreement the company signed is not final yet.
So Bally's says there is no guarantee the plans will succeed.
Bally's Corp. warned of 'substantial doubt' about its ability to continue as a going concern due to a risk of breaching its lender agreements.
The Rhode Island-based casino operator said current forecasts show it cannot satisfy lender requirements on liquidity or its debt leverage ratio.
The company is pursuing funding alternatives including asset or equity sales and debt financing.
Bally's anticipates raising over $500 million to fund its casino resort in the Bronx, New York, where it has already invested more than $800 million.
Second-quarter revenue rose 21% to $792 million, meeting the average analyst estimate.
- Who
- Bally's Corp., the Rhode Island-based casino operator controlled by investment firm Standard General.
- What
- Warned investors of 'substantial doubt' about its ability to continue as a going concern and of the risk of breaching lender agreement requirements.
- Where
- Rhode Island-based company with major resort projects in the Bronx, New York, and Chicago.
- When
- Announced in a regulatory filing on Friday, with a company statement issued on Saturday.
- Why
- Based on current forecasts, the company does not expect to satisfy lender requirements on liquidity or its debt leverage ratio.
Key facts
- Company
- Bally's Corp.
- Headquarters
- Rhode Island
- Warning
- Substantial doubt about going concern ability
- Second-quarter revenue
- $792 million (up 21%)
- Bronx project funding target
- Over $500 million
- Amount already invested in New York project
- Over $800 million
- Controlling shareholder
- Standard General
- Financing status
- Non-binding term sheet executed last month
Quotes
Bally’s Corp.
Rhode Island-based casino operator
“There can be no assurance that the plans will be successfully implemented.”
livemint.com
Sources
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