Casino companies’ earnings are plummeting by double digits. Debt costs are rising for many companies. And their customers are spending less.
In the financial world, in this economy, those are the trend lines of doom.
Indeed, a few smaller operators are already close to bankruptcy. But could giants like MGM Mirage and Harrah’s Entertainment be next?
The breathtaking series of Wall Street failures and Washington bailouts of recent months suggests anything is possible — even spectacular failures in Las Vegas.
For now, bankruptcy protection remains a remote, if grim, possibility for all but the most damaged companies. Experts say that banks will negotiate with the big casino operators rather than force them into bankruptcy.
For the complete story, please see Liz Benston, Even major players feel serious squeeze as revenue drops, debts rise
, Las Vegas Sun, October 19, 2008.
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