could add $2.8 billion to Harrah's debt
The buyers of Harrah's
Entertainment Inc. could be getting the casinos with an extra
lawsuit started in 2000 by the Mohawk Tribe could add another
$2.8 billion to the $13.9 billion debt that Harrah's buyers
Apollo Management and Texas Pacific Group agreed to take on as
part of the deal currently in the works. The price of Harrah's
Entertainment Inc. (NYSE:HET) agreed upon by the gambling
company and the private equity joint venture was set at $17.1
billion, including the $13.9 billion in debt. But a lawsuit
initiated back in 2000 could add another $2.8 billion to the
The St. Regis Mohawk Tribe of New York
state sued Park Place Entertainment over a deal the two parties
signed for a joint development of a casino in the Catskills in
upstate New York, about hour and a half away from New Jersey.
But the tribe claimed that the deal was only a tool to keep
tribal competition away from the four Atlantic City casinos of
Park Place's successor company, Harrah's Entertainment Inc. The
tribe was awarded by a tribal court $1.8 billion and later - an
extra $1 billion in interest. The case is pending at a federal
court, where the tribe is trying to enforce the judgment and
Harrah's is claiming that the tribal court is not legitimate.
Harrah's Entertainment Inc. stock price was down 0.39% or $0.35
at 10:40 am EST.