Maloofs Own Only 2% Of Palms

Last week I passed on info that Palms, in Las Vegas, received an injection of cash to help settle some of their debt problems. Just a few days after the report that TGP Partners injected some money we all learn how much they and the Maloof‘s actually own.

The Maloof family will soon own just 2 percent of the Palms Casino, its trendy Las Vegas property, according to regulatory documents filed in Nevada….

….In an interview late Thursday, Maloof said the family could regain a more significant share – up to 20 percent – under buyback options granted by the creditors who are taking control…

….The casino’s creditors, investment firms TPG Capital and Leonard Green & Partners, will own 49 percent each.

The Maloof’s seem to be only part of Palms in name, with a chance to still only be a part of it in name. If each partner gives up 9% interest so the Maloof’s reach 20%, they’re still the smallest shareholder.

I’m not sure that Caesars Entertainment running the show at Palms will lead to profits, but it still seems as if it’s the next move when looking at TGP Capital’s (and Leonard Green & Partners) partners.