Operator News
Canada – Parq Vancouver defaults on loan repayments
By Phil - 7 May 2019
Parq Holdings, the company behind Parq Vancouver a luxury, high-end casino which opened in Vancouver in 2017, has defaulted on a payment.
Parq Holdings, which is made up of majority-owner PBC Group and Dundee Corp, has missed an interest payment on a loan it to fund one of British Columbia’s largest-ever private developments. The casino generated a loss in 2018 of C$153m ($US114m).
S&P Global Ratings downgraded the company from CCC, from B- on April 15.
The Ratings company said: “The downgrade reflects our view that Parq’s inability to meaningfully improve its profitability against a high and expensive debt burden will continue to pressure liquidity, and eventually make the company vulnerable to a balance-sheet restructure. We will re-evaluate our ratings on the company once it successfully executes the proposed refinancing of its existing capital structure.”
Parq Holdings commented: “Parq is solidly on track to close a new equity and finance package, replacing our existing development and construction financing.”
Revenues at Parq Vancouver have been affected by a late opening, lower than expected revenues and failed attempts to refinance the debt and bring in a new partner by April 30. The 72,000-square-foot casino operates with 600 slots and 75 gaming tables.
Image By GoToVan from Vancouver, Canada – Parq Vancouver, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=63300470
