Sybil group plans to build mega-casino in Germany

Saxony-Anhalt is a relatively small, rural state with many casinos. The announcement Safari sent to Israel last month was laconic, stating simply that he had been awarded the concession in exchange for 1 million euro. It turns out, however, that this is a particularly large project that could rival the casinos in Las Vegas in opulence. 
 
In addition to the casino the plan includes a commercial center, restaurants, four 5-star hotels with 1,500 rooms, a conference center and even a riverside marina. German media sources estimate the cost of the project at 300 million euro to 500 million euro.

Sybil Germany is a subsidiary of Sybil Europe. Sarfati is the founder and controlling shareholder of both companies. His planned investment in Germany is very high when compared to the parent company's cash flow from current activities in the first nine months of 2009, which totaled 620 million euro.

Even more intriguing is the fact that a few months ago Sarfati's main concern was the repayment of debts. Together, the two Sybils owe bondholders us$ 53.5 million on two bond series that are trading at yields of 30%-40%, indicating serious investor fears that the companies will not repay their money. These two companies have bank debts totaling us$ 214.3 million, according to the financial reports for the first nine months of 2009.

The casino project would be a major undertaking for any company, and is especially so for Sybil, whose most expensive property thus far is the Maximus Center in Poland, which is valued at 120 million euro. There were questions in the German press about how Sybil will raise the necessary financing and whether it's up to such a big project.

"We have met all our obligations so far," Sarfati told TheMarker. "We have paid off the principal and the interest on time, even though in the past year we have been approached by brokers and advisers who offered us their services to reach a debt arrangement."