Parq Vancouver saved by outside investor
The casino was looking at its imminent demise before being thrown a lifeline
At the beginning of this month, it looked like Parq Vancouver was in a very bad position. It had already defaulted twice on a loan payment and there didn’t seem to be any solution that was going to help the company overcome its long-term financial difficulties. Just as the referee was about to complete the ten-count, though, someone has reportedly stepped in and given the casino new life – at least for a while.
According to Jonathan Goodman, the chairman and CEO of Parq backer Dundee Corp., a new investor has been found. The new partner is going to purchase 34.9% of the company, with the option of purchasing over 50% if it makes certain investments.
Dundee has a 37% stake in Parq and another company, PBC Group, was the largest backer, holding 63%. However, for the new investor to take 34.9%, both are going to have to cut back. Dundee will most likely drop its stake to 24.1% and PBC will lower its cut to 41%, but these numbers have not been confirmed.
The identity of the new partner has not been revealed, per the entity’s request. Goodman states, however, that it is a “private Canadian group that wants to remain private.” He adds, “But I can tell you they are not that private. They have been approved by the regulators of B.C. They’re going to be very active in the day to day business.”
The deal will be a huge relief to Parq. Its operating income has been completely wiped out by large interest rates on $415 million worth of loans, which have now been restructured thanks to the new partner. However, the casino still needs to increase its operations if it is to completely move into the black.