Caesars Entertainment Corp. says it will limit its future investment in a planned integrated resort in Incheon, South Korea to US$60 million. The U.S.-based company is working to secure final financing to proceed with the development, even as it prepares to merge with Eldorado Resorts.
During the company’s second-quarter earnings call last week, CFO Eric Hession said Caesars has already spent US$80 million on the project, originally slated to cost US$700 million. He added, “Our maximum future contribution to the project is US$60 million and that would be the amount of the cash out from our balance sheet that we would contemplate in the entirety of the project.”
Inside Asian Gaming reported that Caesars has been in discussions with “both Korean and international lenders” for the final financing, with no guarantee that the project will proceed. Earlier this year Hession said, “We have to get agreements and have the project come on budget, so there’s always risk associated with any project of that type.”
It’s all up in the air and more delays are likely as Caesars completes its US$17.6 billion merger with Eldorado Resorts.
“We’ve been focused on the merger and then our properties and our business here in the U.S., and that’s going to be a focus of our attention over the next month or two,” CEO Tony Rodio said last week in response to questions over the progress of Caesars Korea.
