The successful bidder for the casino complex that is planned to be part of the $8billion development of the old Hellenikon International Airport site near Pireaus is reported to be seeking a $100-million loan to keep viable its casinos that were closed by COVID-19 lockdowns.
The US based Mohegan Gaming & Entertainment (MG&E), became the sole bidder for the former Athens airport development, long considered the biggest such development in Europe, when earlier this month the top administrative court in Greece threw out an injunction by Hard Rock International to prevent the granting of the licence to Mohegan.
READ MORE: Hard Rock heads to courts to reverse old Athens airport casino decision
According to Bloomberg News, unidentified sources said that a group from Mohegan had sought Rothschild investment bankers f to act as financial advisers in brokering the loan. Credit Suisse Group AG, which is apparently leading the loan offering, and Mohegan have refused to comment.
Mohegan is reportedly offering a 14 percent yield on a new loan that is to mature in October 2021 and is also negotiating to change lending agreements on existing loans to give it a better chance to overcome its cash shortfall.
Investors are concerned that Mohegan, which missed a self-imposed deadline on the Athens development project, was seeking the loan to stay afloat while continuing its expansion plans.
MG&E which is owned by the Mohegan tribe and is based in Connecticut, operates the Mohegan Sun and other casinos in the US. Investors are concerned that since some Mohegan casinos are located on Native American tribal land that could reduce investors rights to seize and liquidate assets should the company default on its loans.
READ MORE: Mohegan-led consortium wins casino licence for Hellinikon project in Athens