Las Vegas-based Harrah's also said in a filing with the Securities and Exchange Commission that since voters extended gambling in an Iowa county it would pay in the fourth quarter an additional $50 million for its acquisition of Harveys Casino Resorts, which does business in Iowa. 온라인카지노사이트
Bankrupt National quit flying last week after extended negotiations on a financing package fell through.
Harrah's exposure to National through a $12.25 million letter of credit had been widely known. Harrah's, which wrote off an earlier equity investment in National, had shared the credit exposure with an unidentified, third party investor that made a deal with Harrah's.
"As a result of this settlement with the investor and our anticipated funding of the letter of credit following NAI's (National's) cessation of operations, we expect to record a charge of $5.5 million to $6.5 million in fourth quarter 2002," the company said.
Separately, voters in Pottawattamie County, Iowa, voted last week to allow gambling to continue, leading to the extra $50 million payment in relation to the purchase of Harvey's.
"It had been anticipated," spokesman Gary Thompson said.
Harrah's bought Harveys Casino Resorts in July 2001 for $294 million and assumed about $350 million in debt. It also agreed to pay another $50 million for the acquisition if the Iowa ballot measure passed.
Harrah's bought four casinos in the Harvey's deal, two of which were in Council Bluffs, Iowa.