Parq Holdings LP, the company which owns and operates the Parq Vancouver casino in British Columbia, has defaulted its debt payments. The company has been struggling with its finances and its attempt to refinance the loan failed.
Following the debt payment default, Parq Holdings’ credit ratings were downgraded by the global credit rating agency Standards and Poors (S&P). The agency slashed credit ratings as the company failed to make payments even after a 30-day grace period.
The company officials have linked its failed payment to ‘operational underperformance’ which has taken a toll on the company’s liquidity and ability to repay the debts. The company has also announced that they are soon going to close a new equity and finance package, and replace their existing development and construction financing,
Recently the authorities have been stringent on money laundering activities and given the fact that British Columbia casinos have been infamous for facilitating money laundering by accepting cash from gamblers the crackdown has been particularly harsh for casinos in the region.
Following the crackdown and stricter implementation of regulations, many British Columbia casinos including Parq Vancouver had reporter shrinking revenue. However, the casino was working on its plans to refinance and have said that they would have a new refinance partner by April 30 – but it didn’t materialize.
A note issued by the credit rating agency S&P read, “We will reevaluate our ratings on the company once it successfully executes the proposed refinancing of its existing capital structure.”