The Las Vegas Hard Rock Casino has fallen on hard financial times and just when it seemed like it was all about to come crashing down, the casino has received a lifeline of sorts from its lenders. Hard Rock Casino has reached a standstill agreement with its lenders that will allow the casino a small window of time to deal with its financial difficulties.
It’s a fortuitous turn of events for financially strapped casino which teetered on the verge of hitting rock bottom but fortunately had an earlier threatened foreclosure called off and litigation over the possible foreclosure stayed.
The agreement gives Hard rock until February 28th to deal with its debt and liabilities totaling $1.4 billion. As the Las Vegas Sun reports, Hard Rock’s lenders have ”agreed not to take any action or assert any right or remedy arising with respect to any of the applicable loan documents against the subsidiary borrowers or the collateral pledged under such loan documents.”
Hard Rock stated in its filing “The parties to the Standstill and Forbearance Agreement are engaged in continuing discussions regarding resolution of the subsidiary borrowers’ obligations under the loan documents and disposition of the related collateral.”
So there’s a small window of hope, but with an enormous amount of debt to deal with, Hard Rock is definitely on the clock.
