Leisure, Travel and Hotels Industry News Sample

Jun 03, 2002 02:53:56

LIQUIDITY ALERT: Sun Int'l. Hotels Has $40 Mln Working Capital Deficit

FREDERICK, Maryland (SunStream News) -- Resort operator Sun International Hotels Ltd. reports $154.9 million in current liabilities and $114.8 million in current assets, or a working capital deficit of $40 million, for fiscal 2001, regulatory documents show. Based in Paradise Island, Bahamas, the company sold off Resorts Atlantic City for $144 million, resulting in a significant decrease in current assets. The cash proceeds were used to repay borrowings outstanding under its revolving credit facility and permanently reduce the size of the facility. At yearend 2001, it had cash and cash equivalents of $30.5 million. It generated $99.3 million in cash flow from operations. In August 2001, the company issued 8 7/8 percent senior subordinated notes for $200 million. The notes are unsecured obligations and are unconditionally guaranteed by all of its wholly-owned subsidiaries. The company's credit facility provides borrowings of up to $350 million. The amount of borrowings outstanding at 2001 was $24 million, which was repaid in full in April 2002. The company says it is in talks with the lenders to increase the amount available under the facility by $100 million. In May 2002, the company sold $200 million of additional 8 7/8 percent senior subordinated notes to in a private offering.

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Source: Liquidity Alert

Publication Date: 2002-06-02

 

NWS:	ERN
	FNC
	OFR

COY:	SIH

IND:	LEI

GEO:	nwbf

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