Resort at Summerlin seeks investors

Wednesday, Nov. 17, 1999 | 11:04 a.m.

The Resort at Summerlin is seeking additional investors to help shore up its faltering financial fortunes.

In a report filed with the Securities & Exchange Commission, the company said its "available sources of capital are insufficient to meet presently foreseeable capital requirements through the end of 1999."

"In the longer term," the filing said, the resort doesn't believe it "will generate sufficient cash flow to meet its debt service and other cash outflow requirements and maintain compliance" with covenants in its first-mortgage notes and senior subordinated notes.

As a result, the filing said, the company is trying to restructure its debt and bring in new equity investors. The Resort at Summerlin's parent company, Swiss Casinos of America Inc., a subsidiary of Swiss Casino Holdings, has put additional cash into the property to finance current operations.

The upscale hotel-casino at the corner of Rampart Boulevard and Summerlin Parkway has been plagued with cost overruns and construction delays. It had an operating loss of $18.9 million for the quarter ended Sept. 30.