As the restructuring of Palm Resort Casino’s debt has been finalized, Maloof’s Palm’s ownership has decreased to just two percent. Remaining 98 percent of the entire stake will be shared between Leonard Green and TGP Capital. But even after this, there will be no change in casino’s management as George Maloof continues to be the chairman of the resort casino. The restructuring of the debt of around $400 million has already been approved by the state gaming regulators. Earlier, the family ownership in the online casino resort was 85 percent. But after the recent debt restructuring, Maloof’s Palm’s ownership decreases to 2 percent. According to Maloof, the step will improve the current position of the resort as it is now doing good and making more business than before.
In an interview with the press, Maloof said that, “Not having any debt is a pretty good position to be in, and we’re going to grow at the Palms and look at things that we want to do here and look at other opportunities.” Even after restructuring of the debt of such a huge amount, the casino resort is still under a debt of $20 million. Apart from this, both the companies, TGP Capital and Leonard Green, will own a share of 49 percent each. Although the 1300-room off-strip hotel casino’s ownership has passed on to other companies, the management will remain the same. Till now, there are no changes in it as George Maloof holds the same position in the casino.
Although Maloof’s palm’s ownership decreases to 2 percent, the family has an option to buy back up to 20 percent of the stake by means of options and warrants. This entirely depends on the future growth and development of the casino. But right now, it is a relief for them as the family is not under a huge debt now. According to George, it is a very nice feeling being debt-free and now they can focus on its growth and expansion. It is a good chance to take the business to the next level. Previously, the main concern of Maloof family was to get rid of the huge debt. But now as restructuring has taken place, all efforts can be focused toward its growth and development.
For past three years, Palms has not been doing well as compared to other casinos. This is one of the major reasons why such a huge debt got accumulated and Maloof family had to enter in to an ownership transfer deal with TGP Capital and Leonard Green. Apart from this, economic recession further worsened the situation. The online casino visitors started spending less money due to which the casino experienced a slowdown in its business. But, now it is expected that the recent transaction results in growth of the casino business. Even after Maloof’s Palm’s ownership decreases to 2 percent, the entire scenario as well as the resort’s management will remain same. Now the focus is on expanding the casino business and getting rid of the remaining debt of $20 million.
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Online Casino Edition
Address
Rua Egas Moniz 44 4050 Porto Portugal
Phone Number
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