economy

Business

Casino owner owes millions

la prensa

Fiesta Casino's parent company is having financial difficulties.

The golden rule of gambling has always been the house always wins.

But the owners of Fiesta Casino find themselves on the losing end of the balance sheet, as they owe millions to Panama banks and private investors. 

Thunderbird Resort, which owns Fiesta Casino, has a debt of more than $58 million dollars. Of this total, approximately $46 million is owed to five Panamanian banks and investors. One of those banks lent the casino $26 million.

The company said that it has not yet failed to pay any of its obligations, but agreed that it needs to restructure its debt. The company's shares have reflected the dire financial situation, falling from $9 to $1.25.

The company claims it is expecting an infusion of cash totaling $80 million that they expect to have approved next week. La Prensa learned that the loans is being negotiated with the U.S. investment company Friedman, Billings, Ramsey (FBR).

Alberto Loaiza, vice president of operations of Thunderbird Resorts in Latin America, agreed that the company is facing financial difficulties and has had to renegotiate payments to creditors. 
  
"There are assets that are not performing," he said. "The main problem was in Peru, where we bought six hotels for about $100 million."

Thunderbird Resort owns 60 percent of the shares of the concessionaire company that operates Fiesta Casino. The remaining 40 percent is held by minority shareholders.

Representatives of a Panamanian bank that is one of the company's creditors said that, until now, the company has met its obligations. The source said the company is considering taking action against a government proposal to raise taxes on casino profits.