Investment firm increases interest in casino chain
Posted by Gavin Smith on 10 Nov 2009 at 13:11
The private equity company Apollo Management is upping its investments in Harrah's Entertainment, buying bonds in the casino chain, according to reports.
The New York Post reported the move, which is thought to be geared towards giving the company more power in the event of a debt restructuring, even though there is a chance it would have its large stake wiped out.
Two other private equity firms, Blackstone Group and TPG, will not be reinvesting.
The trio of companies bought Harrah's in 2008, and although a number of measures have been taken, the company still owes around $18 billion.
Early in 2009, Apollo and TPG bought Harrah's loans with a face value of $2 billion at a discount, in an attempt to slash the firm's debt.
The casino sector is among a number of industries hit hard by the recession.
