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Wonder if they will qualify for assistance?? Oh wait, Goldman Sachs is the lender and investor…
Colony Resorts LVH also reported that it chose not to make monthly interest payments totaling $3.5 million for June, July and August on its $252 million term loan “in order to conserve liquidity for operating and other needs.” The loan makes up the bulk of the company’s $296 million in debt and liabilities.
While the lender is now entitled to exercise various remedies due to the default, Colony Resorts LVH said it’s “currently in discussions with its lender to negotiate a restructuring of its debt, the outcome of which is uncertain.”
The term loan lender is Goldman Sachs Commercial Mortgage Capital L.P.
A Goldman Sachs affiliate is an investor in Colony Resorts LVH and this is not the first time the term loan has been in default, with the last default resolved in July 2010.
This means the current default may again be resolved on friendly terms.