Small investments by third-party groups in Harrah’s Entertainment and Station Casinos continue to be written down as both companies struggle to refinance large debt loads.
Citigroup analyst Jenny Owen, based in Australia, recently wrote in a note to investors that a $414 million investment by Melbourne-based Crown Limited in both companies was now “worthless,” according to the Sydney Morning Herald.
Crown announced in August that it was forced to write down $258 million of the investment, which represents a 4.9 percent stake in Station Casinos and a 2.5 percent stake in Harrah’s, due to the decline in revenue and customer spending at both companies.
The remaining investment has apparently bottomed out as numbers continue to decline.
French private equity firm Eurazeo announced last week it had partially written down its $200 million, or 5.3 percent, stake in Station Casinos.