Investors brace for Irish bank bond swaps

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No InstallTaonga: The Island FarmReporter CenterBrenda Lee: What Is She Doing Now At 76 Years of Age?Reporter Center Investors brace for Irish bank bond swaps center_img whatsapp EXPECTATIONS grew today that bondholders in Irish banks may be offered the chance to swap billions of euros of debt for new bonds, sharing the pain as they realise a loss – but avoiding a potentially worse outcome.Such tenders have been used successfully by Irish and other European banks during the financial crisis. to allow institutions to buy back bonds at a premium to their market price but at a discount to nominal value.The deal saves the banks’ money but forces bond investors to take a so-called “haircut”.Standard & Poor’s on Wednesday cut Irish banks long-term credit ratings, saying “the stand-alone creditworthiness of the four domestically owned Irish banks has weakened”.And expectations increased that senior bondholders in Bank of Ireland, Allied Irish Banks and nationalised Anglo Irish Bank would have to bear some of the distress after The Irish Times said the IMF and European Union have been examining ways of spreading the bailout costs.Investor nervousness grew after the report, with prices of Irish and European bank bonds falling sharply. There were no bids for Allied Irish or Bank of Ireland senior debt, with liquidity in the market drying up.A tender would be among the least painful options for Irish bank bondholders. Another scheme being considered involves swapping bank debt into equity. Investors could also be given the choice of injecting fresh capital or face a cut in their investment, The Irish Times said.Whether senior bondholders are forced to take a hit is a hot topic after several European politicians said they should share the cost of the bailout.“Clearly things are coming to a head in Europe and there’s a debate, particularly in regard to the Irish banks, that bondholders may need to be subject to burden sharing,” said Mark Dowding, senior portfolio manager at Bluebay Asset Management in London.“In the first instance it may be offered as a debt swap. But if there’s not sufficient take up there may be more of an enforced effort,” Dowding said.However, such a dramatic move could further undermine confidence in banks in Portugal and Spain, by showing all investors are vulnerable. And it could make it tougher for Irish banks to fill a future funding gap estimated at about €160bn (£135bn).German Chancellor Angela Merkel has repeatedly said bondholders should share the pain when a country hits trouble, but only for bonds issued from as early as 2011.An €85bn rescue package is expected to be unveiled, possibly over the weekend, to cover Ireland’s funding costs and the cost of “overcapitalising” the banks.Ireland’s government has consistently said it will honour its obligations to senior bank bondholders, despite forcing a haircut on holders of subordinated debt in Anglo Irish and Irish Nationwide.But the main opposition party Fine Gael, which will likely lead a new government next year, has said all bondholders should share the burden of bailing out the banks. Bank of Ireland, which has boosted capital by €1.7bn from bond offers in the last two years, had about €31bn of senior debt and asset-backed securities at the end of June.AIB had €20bn of senior debt and Anglo has about €6.5bn of senior debt after maturities in September. 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Crown revenue down 62.1% in H1 as operator plans “complete reset”

first_img Email Address Because of the closures of Crown Melbourne, Crown Perth became the operator’s leading property in terms of revenue, bringing in $409.0m, down 5.3%. Crown revenue down 62.1% in H1 as operator plans “complete reset” H1 results 2020 The operator said that Crown Melbourne’s revenue – adjusted for hold percentages – came to $97.1m for the quarter, down 90.5%. This was made up of main floor table revenue of $30.3m, machine revenue of $23.4m, adjusted VIP revenue of $3.7m and non-gaming revenue of $39.7m. Regions: Oceania Australia “Despite the uncomfortable reading at times, Crown has welcomed the Commissioner’s report,” Coonan said. “We see it as an opportunity for a complete and comprehensive corporate reset. Crown’s overall EBITDA for the half was $4.4m, down 99.0%. After accounting for closure costs, pre-opening costs and other one-off items, Crown’s net loss after tax was $120.9m, compared to a $218.2m profit a year before. 18th February 2021 | By Daniel O’Boyle Gaming machine revenue was the largest portion of this total, at $171.6m, up 19.0%, while main floor table games brought in $103.5m, up 5.7%. Hold-adjusted VIP revenue was just $400,000, down 99.0%, and non-gaming revenue $133.5m. Tags: New South Wales Crown Resorts Helen Coonan Ken Barton The steep drop in revenue was mostly due to the closure of Crown’s venues as a result of the novel coronavirus (Covid-19) pandemic. This included the operator’s flagship Crown Melbourne venue, which was closed for much of the six months. Crown noted that VIP revenue across all of its resorts dropped especially significantly because of restrictions on international travel. Crown also announced that Mary Manos has stepped down from her roles as general counsel and company secretary with immediate effect. McGregor will take over as interim secretary. “As interim executive chairman, I am determined to provide the leadership required to drive change,” she said. “My job is to lead Crown to become a stronger company, a more transparent company and a more respected company. A better company.” Subscribe to the iGaming newsletter “We recognise the need for immediate and swift action and I would like to reiterate my commitment to driving the necessary ‘root and branch’ change that is required,” she explained. “Crown has committed to working constructively with ILGA to advance reforms necessary to allow it to give effect to the Restricted Gaming Licence in Sydney.” AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Australian land-based operator Crown Resorts’ revenue fell 62.1% to AUS$581.0m for the six months ended 31 December, as a tumultuous period saw the business swing to a $120.9m loss. Crown Perth, meanwhile, reopened in late-June 2020. Chief financial officer Alan McGregor said the property had performed “ahead of expectations” since reopening. Coonan added that she was determined to lead a turnaround for the operator. Directors Guy Jalland, Michael Johnston and Andrew Demetriou also resigned this week, with Nigel Morrison being appointed to Demetriou’s spot. Following the release of the report, chief executive Ken Barton stepped down with executive chairman Helen Coonan taking over on an interim basis. “In consultation with Mary, the Board has determined that, with the regulatory challenges facing Crown, the role of General Counsel and Company Secretary will be split into two separate roles,” Coonan said. “This represents a further significant governance improvement for Crown and demonstrates Crown’s commitment to a well resourced governance, legal and compliance function.” Last week, the inquiry published its full report, which found that it was unsuitable to operate the casino. It may still do so if it makes certain changes, including ending its ties with junket operators and conducting financial and compliance audits. “Crown Melbourne has progressively recommenced operations from November, albeit with only limited initial access to the property. Since the easing of restrictions on 9 December, results had shown improvement but continued to be impacted by ongoing limitations on capacity.” “The main gaming floor started strongly, with performance moderating across the half,” McGregor said. “Non-gaming revenues were adversely impacted by capacity constraints and reduced foot traffic to the property, but have shown improvement through the half, particularly over the summer holiday season, despite the restrictions which remain in place,” While Crown did not reveal its revenue from digital operations, it said earnings before interest, tax, depreciation and amortisation (EBITDA) was $23.2m. Crown Sydney opened for the first time in December 2020, but gaming operations could not yet open because of the inquiry into the operator’s licence. Topics: Casino & games Finance Legal & compliance Casino regulation Land-based casino H1 results 2020 Compliance Licensinglast_img read more