Parq Vancouver continues to struggle with debt

Parq Vancouver casino’s operator missed an interest payment on a second-lien loan and continues to struggle to refinance its debt.

Canada.- Parq Holdings LP seeks to develop one of the largest private developments in British Columbia. However, it continues to struggle to refinance debt taken for it and missed an interest payment on a second-lien loan.

S&P Global Ratings downgraded the company to selective default from CCC after a 30-day grace period expired. “Parq is solidly on track to close a new equity and finance package, replacing our existing development and construction financing,” the company said.

According to a recent filing by Dundee Corp (company’s co-owner), they had already been looking to refinance their debt. In an April 30 release, they advanced they were looking to bring in a partner to do so.

“We will reevaluate our ratings on the company once it successfully executes the proposed refinancing of its existing capital structure,” S&P added in a note.

Struggling in 2018

The Parq Vancouver hotel and casino complex wasn’t very happy about its own results. Late in November, they reported losses for the year. They blamed new anti-money laundering rules in British Columbia for scaring high-rollers with legitimate cash away.

“At Parq Vancouver, the ramp-up of operations proceeded at a slower than anticipated pace, and continued to be exacerbated by the recent implementation of anti-money laundering initiatives which are having an adverse impact on the gaming industry in British Columbia,” said Jonathan Goodman, CEO of one of its parent companies, Dundee Corporation, in August.