Casino News

Volatile markets have 'delayed Hooters buy-out'

2007-08-22 16:23:14

The beleaguered financial markets have delayed an investment group's purchase of Hooters casino resort in Las Vegas, according to a source close to the proceedings.

Richard Bosworth of Hedwigs Las Vegas Top Tier said volatility in the market in recent weeks has forced the private equity investors to its finance projections.

"The capital market condition is out of our control," Mr Bosworth said. "It doesn't put the deal at risk. It changes the pricing."

Once the deal has gone ahead Hedwigs Las Vegas Top Tier plans to upgrade the property, which recently underwent a $130 million renovation.

For the past few weeks, investors have been reacting to fears that problems in the property market could spill over into the global economy.

The sub-prime mortgage sector, which offers high-interest mortgages to homebuyers on low incomes or with poor credit ratings, has reported large numbers of defaults over the past year.