8/14/2019 Packers Debts $2b and yet ticking Never intendedto invest in Sri Lanka

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Packers Debts $2b and yet ticking: Neverintended to invest in Sri Lanka

(Lanka-e-News-

03.Nov.203! ".00P# %erry Packer was notorio&s 'or osing )iions o' doars on t*e ga)ingtabes o' t*e word. +&t since *is 'at*ers deat* in 200,! a)es Packer *as been )aking 'arbigger! biion-doar bets! b&iding and b&ying casinos aro&nd t*e word. nd so 'ar every one*as ost.

/*e tota da)age to #r Packer and *is s*are*oders in rown Li)ited! according to tonig*ts+s 1o&r orners! co)es to neary S$2 biion. /*e b&k o' t*is )oney! aro&nd S$.3biion! was ost in Las egas! b&t t*ere *ave aso been setbacks in anada! t*e %! 4&ssia!Singa5ore and #aca&.

#r Packers bets in Las egas were )ade at a ti)e w*en )ericas s&b-5ri)e )ortgagedisaster was aready &nder way and t*e goba 'inancia crisis was brewing.

6t was in &y 200" t*at two +ear Stearns *edge '&nds in New 7ork went s5ectac&ary b&st'ro) w*ic* #r. Packer is yet to recover. So *ow s)art was it to be b&ying back t*en8 96twasnt s)art! says 4andy 1ine! w*o r&ns 1ine Point ;ro&5! a eading casino cons&ting 'ir)in Las egas. 96t was a good ti)e to be receiving t*e biions o' doars. 6 dont t*ink it was agood ti)e to be *anding o&t t*e biions o' doars.

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8/14/2019 Packers Debts $2b and yet ticking Never intendedto invest in Sri Lanka

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a)es Packer? bo&g*t at t*e 5eak! t*eres no @&estion abo&t t*at. =e wasnt t*e ony onet*o&g*. #any ot*ers got beaten &5 5retty dee5y as we.< #r Packers and rowns biggestbet! wort* S$2." biion! was to b&y annery asino 4esorts! w*ic* owns t*ree s&b&rbancasinos in Las egas and one in Pennsyvania. nno&nced A&st as t*e )arkets began to side! itwas seen to be eB5ensive even t*en.

So was it ever a good dea8 9No! says 4andy 1ine b&nty. +&t it soon got )&c* worse.

Las egas was *it by t*e worst downt&rn in its *istory! w*ic* *as seen reven&es on t*e Stri5decine 'or C )ont*s in row. /*e city now *as t*e *ig*est *o)e 'orecos&re rate in t*e S!one o' t*e stee5est decines in *o&se 5rices! and one o' t*e *ig*est rates o' &ne)5oy)ent! wit*one in eig*t 5eo5e o&t o' work.

/*e annery dea *ad to be canned at a cost o' a)ost $,00 )iion. +&t it wo&d *ave beenworse *ad t*e 5&rc*ase gone a*ead. +y t*en! s*ares in Las egas casino co)5anies *ad 'aen!on average! by a)ost C0 5er cent. nd so)e o' t*e biggest o5erators! ike Las egas Sands and

#;#! were on t*e brink o' bankr&5tcy.

So! too! were so)e o' t*e ot*er co)5anies and 5roAects #r Packer and rown *ad invested in.Station asinos! t*e argest s&b&rban casino o5erator in Las egas! 'ied 'or *a5ter bankr&5tcy earier t*is year! 'orcing rown to write o'' its entire S$22 )iion invest)ent.rowns S$"2 )iion invest)ent in =arra*s! t*e words argest casino co)5any! w*ic*owns aesars Paace and Paris egas! *as aso been written o''! even t*o&g* =arra*s *as so'ar )anaged to stay sovent.

#r Packers and rowns 20 5er cent invest)ent in t*e new $S2.C biion 1ontainebea& Las

egas *as aso co)e &nst&ck. /*e co)5any b&iding t*e *&ge &B&ry resort at t*e r&n-downnort* end o' t*e Las egas Stri5 went bankr&5t in &ne a'ter its bankers 5&ed t*e 5&g. /*e*a'-'inis*ed s*e! w*ic* wi take an esti)ated $S., biion to co)5ete! is now &5 'or sae.Ence again! Packer and rown *ave written o'' t*eir entire $333 )iion invest)ent.

So w*y did it a go wrong8 +a)e t*e goba 'inancia crisis. 1ewer 5eo5e are now co)ing toegas and t*ose w*o co)e are s5ending ess! so winnings and *ote reven&es *ave 'aen by 205er cent. +&t ba)e t*e casino and a5art)ent deveo5ers! too.

&st abo&t everyone was betting t*at reven&es wo&d contin&e to rise as t*ey *ave done 'or t*east 20 years. nd t*ey were backing t*ese debts by borrowing biions o' doars to b&id newresorts or take over co)5anies. nd t*ey now cant 5ay t*e interest. a)es Packer was noeBce5tion. 6n b&ying into Station and =arra*s *e and *is s*are*oders were 5iggybacking on5rivate e@&ity deas w*ic* *ad e't t*ese co)5anies owing S$C biion and S$2., biionres5ectivey.

/*e new S$2.C biion 1ontainebea& Las egas resort was aso argey debt 'inanced. nd #rPackers S$, biion rown Las egas /ower (w*ic* never got started wo&d aso *ave beenb&it on borrowed )oney. #r. Packer *as earned a negative na)e in t*e asino +&siness t*at

8/14/2019 Packers Debts $2b and yet ticking Never intendedto invest in Sri Lanka

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a *is ProAects eit*er stay on t*e drawing board! go insovent or eave be*ind *a' b&it g*osttowers t*at never get o'' gro&nd ike t*e rown Las egas! t*e taest casino in Las egas! wasset to b&id by a)es Packer *as been scra55ed d&e to 'inancia *ards*i5.

Las egas! known as FSin ity and toerates a 'or)s o' ad&t entertain)ent *as a casinocenter w*ic* was bo&g*t by #r. Packer.

=owever! 'oreign )edia re5orts t*at Packer is 'inding *i)se' in t*e sa)e 'inancia tro&be t*at5ag&es so )any and is c&tting back. /*e S&nday /eegra5* *as re5orted t*at Packer *as 5&t *isS$,0 )iion G,-'oot &B&ry yac*t t*e H Ierston &5 'or sae! *as 5&s*ed back t*e 5&rc*aseo' a 5rivate +oeing Aet and *as *ed &5 constr&ction o' t*e *&ge backyard 5oo co)5eB5anned 'or Ierston! t*e 'a)iy 5ro5erty near Scone. Packer *as aso 5&t a t*ree-evea5art)ent in Londons #ay'air area &5 'or sae. =e aso recenty sod *is stake in onsoidatedPastora o)5any 'or abo&t $2, )iion.

#r. Packers trib&ation see)s to be getting worse wit* *is )ost recent bad b&siness decision

to b&id a $00 )iion 6ntegrated 4esort and asino ProAect in Sri Lanka na)ed t*e rownoo)bo. Sri Lanka (known 5revio&sy as eyon is a debt tra55ed econo)icay aiing nationt*at 5ays *ost to t*e biennia s&))it )eeting o' t*e *eads o' govern)ent 'ro) ao))onweat* nations =E;# t*is Nove)ber.

Sri Lanka was 5ag&ed by a 3 decade batte between its *a' )iion troo5 contingent and a&nder ten t*o&sand cadre gro&5 o' /errorist known as t*e L//I. Since 200, t*e co&ntry isr&ed by an a&tocratic 'a)iia oigarc*y s&b)erged in n&)ero&s =&)an 4ig*ts vioations and'agrant corr&5tion. /*e 6ndian ocean isand nation Sri anka (eyon is a b&dget to&rist! back-5acker and a baggage traders destination! it doesnt s*ow )&c* or any sco5e in grad&ating

itse' to a *ig* roer ga)bing! biionaire b&siness *&b! destination to A&sti'y rowns a)ost*a' a biion doar bet on it. Iven be'ore breaking gro&nd 'or t*e )ega 5roAect! it *as 'aced)&ti5e setbacks by t*e )aAority Sin*aa +&dd*ist cergy and e't wing 5oiticians stagingvioent 5rotests 'orcing t*e ;overn)ent to sta it.

ontrary to t*is! ot*er so&rces viewed t*at #r. Packer never intended to b&id a 4esort orasino in Sri Lanka! b&t was eB5oiting t*e Sri Lankan govern)ents 'ree 'or a iss&e o'Sovereign ;&arantees on be*a' o' 5rivate enter5rises w*ic* wi aow investors to *awk 'or'&nds 'ro) o'' s*ore vent&re v&t&res at &nserviceabe rates o' interest. /*is *as ra5idytrans'or)ed oo)bo as t*e 5aying 'ied 'or bankr&5t biionaires and con)en to eB5oit on!w*ist 5acing t*e Sri Lankas Jero de'a&t credit rating to take a 5&nge into negative creditscore wit*in t*e neBt tweve )ont*s.