Barbara Cappaert, a bond analyst with KDP Investment Advisors, recently predicted that Hooters Casino Hotel in Las Vegas may default on its $130 million bond if conditions do not drastically improve. Just prior to the release of the analyst’s note, Hooters reported its fourth-quarter operating loss was likely to hover around $1.5 million. The company must pay a $3 million bond payment by April 1, and Cappaert said this payment is unlikely, considering that the first quarter is expected to be just as bad as the fourth. In December, Moody’s Investment Services downgraded the property’s debt to “in poor standing” due to its seeming inability to avoid default.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.