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Resort operator in default on debt

Friday, March 3, 2000 | 10:54 a.m.

Resort at Summerlin L.P., owner and operator of the Regent Las Vegas hotel-casino, said Thursday it is in default on its credit agreements as a result of heavy borrowing from one of its partners over the past four months. The default affects about $200 million in outstanding bonds.

Resort at Summerlin said it has borrowed $30.9 million from Swiss Casinos of America Inc. since November, and has had to secure this debt with a subordinated deed of trust and security interest on the Regent Las Vegas.

Establishing a deed of trust and security interest is a violation of the Regent's credit agreements for $100 million in mortgage bonds, and its indenture for $100 million in subordinated senior notes, the company said.

The company said it may have to borrow additional funds "to fund the partnership's ongoing capital needs." Neither Swiss Casinos nor any of the resort's general partners has committed to providing additional financing.

Swiss Casinos is the largest shareholder in the Resort at Summerlin partnership, owning more than 90 percent of its stock.

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