The Hard Rock Hotel and Casino Las Vegas has continued to struggle and has reported a $103 million loss.
Several hotels and casinos have struggled since the recession, including Caesars Entertainment Corp., which owns Caesars Palace Las Vegas. Several Caesar's units ended up in bankruptcy in January.
The company that owns the Hard Rock Hotel & Casino Las Vegas, Bref HR, has struggled for years, incurring losses for $103 million, $105.5 million and about $116 million for 2014, 2013 and 2015, respectively. There is substantial doubt about Bref's ability to continue as a going concern, or without the threat of liquidation, because of debt and losses says the company's accountant, Deloitte & Touche LLP, in an April 14 filing with the U.S. Securities and Exchange Commission.
As of Dec. 31, Bref was carrying $762 million in debt. The company has been putting off an interest payment since March 2014 with forbearance agreements, but that $60.3 million payment was due April 17. It is unclear if Bref was able to extend its forbearance agreement, but Bref said in the April 14 filing that it didn't have the money to make the payment.
Bref says it is working on restructuring its debt or finding other financing, but if it doesn't, it is at risk of losing the property to foreclosure. The company has been able to come to agreements with lenders before. For more, see Owner of Troubled Las Vegas Hard Rock Hotel & Casino in Talks With Lender and Las Vegas Hard Rock Casino Aims to Avoid Foreclosure.
Bref was formed in 2011 when affiliates of Brookfield Financial LLC were assigned the interests of the property in lieu of foreclosure. The property isn't affiliated with other Hard Rock units.
The hotel and casino was hurt during the recession, but Bref says the Las Vegas market is showing signs of recovery, and that visitor volume increased 3.7 percent to 41.1 million in 2014, though gaming revenues in Clark County, where the hotel is located, decreased 1.2 percent.
A representative for the hotel and casino was not immediately available for comment.
For the previous edition of Turnaround Tuesday, see Explosive-Detection Tech Business Implant Sciences Extends Time to Pay Debt. For more struggling companies, see Mergers & Acquisitions Distressed Company Watch List.