Construction has stopped on a portion of the Cosmopolitan’s west tower while some floors go through a redesign, according to several sources familiar with the project. Additionally, a reliable source familiar with the industry said Deutsche Bank, which owns the USD 3.9 billion project, signed an agreement Thursday with Hilton Hotels Corp. related to the project. Deutsche Bank does not have a license to operate a casino…
Cosmopolitan Resort & Casino is still a bustling, lively construction site with moving machinery and workers coming and going. Yet, the USD 3 billion megaresort project last month received a default notice from Deutsche Bank AG after payments on a USD 760 million construction loan came due the day prior. The notice additionally triggered technical defaults on another USD 175 million worth of debt.
Beating rival bidders by USD 3 a share, real estate developer Ian Bruce Eichner (in partnership with Dune Capital Management) offered to pay USD 30 a share for Riviera Holdings Corp. The latter is owner of the Riviera Hotel & Casino in Las Vegas and the Riviera Black Hawk in Colorado. Riviera Holdings announced the bid today and officials said they will give the offer serious attention. Shares in Riviera Holdings jumped to USD 33 on Friday, a new 52-week high, during late afternoon trading on the AMEX.
