US Friendly Casinos
The Royal Bank of Scotland Seeks Investors for Online Gambling Gala Coral
With the recent news of the possible sell off of the Gala Coral land and online gambling group, the Royal Bank of Scotland has reportedly come forward to save the venture and is searching for investors to bail out the debt ridden gambling operation. Gala Coral’s business operations have been adversely hit by the downturn in the economy as well as the higher tax imposed recently by the U.K. government, apart from the ban on smoking in its bingo halls. It is reported to be GBP 2.7 billion in the red.
The Royal Bank of Scotland, which assumes the role of an agent for the senior debt holders involved, therefore has much influence although it has a relatively small direct exposure to the debt itself.
The banks introduction to the presentations were plain and to the point, inviting investors to partake in the gambling group or to bid for any of its bingo, casino, betting-shop or online divisions. The RBS invitation read, “The Gala Coral company needs to address its debt burden and is considering a number of options to raise cash. Candover and Permira are financially strained and unlikely to be willing to inject more equity.” The conclusion mentions the alternative to further investment being found of spinning off “one of the company divisions.”
The Group is facing tough deadlines, needing to repay loans of 80 million GBP by September of this year and GBP150 million by 2010. Interestingly enough, the Group had no prior knowledge of the RBS actions and did not give permission for the bank to make this move. Candover, Cinven and Permira are the private equity houses that jointly own Gala Coral Group and have been pursuing investors for funds to ease the debt situation. Their efforts to raise GBP 200 million have been slowed recently by the economic slowdown in the country.
Earlier it had been reported that the debt-laden gambling group Gala Coral could be broken up and the parts thereof would be sold off to secure urgently needed cash for the private equity-owned business.
As the leading lender, the RBS proposal has come in the midst of restructuring talks and just ahead of a major debt deadline for the gambling group.
The RBS, which is owned by the taxpayer in majority, has approached a number of potential investors inviting them to take an opportunistic stake in the gambling group or to bid for any of its bingo, casinos, betting-shop or online divisions.
An RBS presentation said: “The company needs to address its debt burden and is considering a number of options to raise cash. Candover and Permira are financially strained and unlikely to be willing to inject more equity.”
Blackjack at www.eBlackjack.com - Everything Blackjack
Play the lottery online! www.OnlineLotteries.com - Online Lotteries
Craps online at www.CrapsOnline.com Craps Online
Online Casino games, and read casino reviews and get casino news at www.OnlineCasino.co.in - Online Casinos
Get the best online blackjack reviews, tips, and more at www.BestBlackjack.com - Best Blackjack
Leave a Reply
#1 Online Casino
