$3 billion casino 'hit by credit crunch'

2008-01-17 11:49:27

A $3 billion casino, planned for Las Vegas, has run into problems because of the credit crunch, it has been reported.

One of its backers, Deutsche Bank, has taken steps to foreclose the project, according to the Associated Press, after its $760 million construction loan went into default yesterday.

The hotel and casino is scheduled to open in 2009 and building work is already underway. Owners 3700 Associates said that they are searching for new investors.

Company spokesman Bruch Eichner said: "This action by our lender comes as no surprise.

"With the current challenges within the real estate and debt capital markets, which are out of our control... we both anticipated and planned for this."

The casino is being built next to the famous Bellagio. It will follow on from the strip's latest casino resort the Palazzo, which is owned by Las Vegas Sands.