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Old 06-17-2011, 04:46 PM   #1
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Default Maloofs give up controlling interest in Palms casino hotel

Sacramento Bee reports:

The owners of the Sacramento Kings have surrendered controlling interest in their Las Vegas casino, in a deal that they say improves their finances considerably.

After months of negotiations, the Maloof family announced Tuesday that it has reached a “recapitalization” agreement with the Palms Casino’s main creditors, investment firms TPG Capital and Leonard Green & Partners.

Co-owner George Maloof said the deal erases the Palms’ debt but leaves the family, which built the trendy casino a decade ago, with less than 50 percent of the equity. That gives controlling interest to TPG and Green.

But Maloof, who enjoys a high profile in Las Vegas, said he will continue to run the Palms. He said “it’s not disappointing at all” that controlling interest has passed to the creditors.

The deal could have significant implications for the Kings at a crucial time in the team’s history. The Kings passed up an opportunity last month to move to Anaheim, agreeing to give Sacramento a last chance to build a new arena. City officials and the NBA expect the Maloofs to contribute to the project, but the amount remains to be seen
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