he company feels that the Las Vegas market will recover from what has been a terrible 2009.
"We believe in the future of Las Vegas," said Chairman and Chief Executive Officer of Penn National, Peter Carlino, "The current economic crisis will not last forever. Our view is that Las Vegas will in time be fine. We are concerned about the absorption of all the new units that will come to that city."
Lenders cut off the funds for the Fontainebleau project and it has caused the stoppage of construction. That stoppage also cost workers their jobs. Penn National believes that the project still could succeed, but they must get it at their price.
Currently, that price is less that us$ 300 million. Penn National is the stalking horse bidder in bankruptcy court for the project. That means, if no other bids come in, Penn National agrees to pay the price they bid for the project.
If they win the rights to the Fontainebleau, the company believes that us$ 1.5 billion more would have to be put into the competition of the 3,889 room hotel. Penn National is also considering other acquisitions should the Fontainebleau deal fall through.