Sources inform ''Globes'' that Nochi Dankner and Yitzhak Tshuva met bankers from Goldman Sachs Group Inc. (NYSE: GS) and Credit Suisse Group (NYSE: CS; SWX: CSGN; XETRA: CSGZ) in New York yesterday to discuss repayment of their loan taken to buy the land for their planned $6-8 billion Plaza Casino and Hotel in Las Vegas. Dankner and Tshuva are seeking another postponement for repaying the $625 million, due in February. The banks first postponed repayment of the loan in August.
Dankner and Tshuva bought the land for the planned Plaza Casino and Hotel for $1.24 billion in 2007. Tshuva and Dankner own the project in equal shares: Dankner through IDB Holding Corp. Ltd. (TASE:IDBH) unit IDB Group USA Investments Inc. held equally by Discount Investment Corporation (TASE: DISI) and its subsidiary Property and Building Ltd. (TASE: PTBL), and Tshuva through Elad Properties unit Elad Las Vegas LLC. The 1.5-million square meter Plaza Hotel and Casino will have 3,500 rooms, and a 500,000-square meter residential project.
Credit Suisse and Goldman Sachs will probably use the reduced valuation of the land of $652-710 million made in September to demand larger securities from Dankner and Tshuva's companies. Sources inform ''Globes'' that the goal of the valuation was to obtain more guarantees.
Last year, Goldman Sachs provided Discount Investment subsidiary Koor Industries Ltd. (TASE:KOR) loans to buy 3.4% of Credit Suisse.
Published by Globes [online], Israel business news - www.globes-online.com - on January 6, 2009
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