Monarch Casino and Resort, a Reno-based regional gaming operator, confirmed that a lawsuit had been filed against it by the general contractor, PCL Construction Services.
As per the Reno-based gaming operator, the lawsuit is filed because the PCL Construction Services is deviating from their weaknesses in the construction of Monarch Casino Black Hawk.
The Monarch Casino Black Hawk in Black Hawk, Colorado is going under massive transformation. Due to the size of the project, a lot of subcontractors are involved with PCL services to upgrade the casino. But there has been some disagreement between Monarch Casino Black Hawk and PCL Construction services which in turn has forced PCL services to sue against the Monarch Casino. When the petition was announced against Monarch Casino, it reflected in its stock which was dropped by 5% on Tuesday 4th September.
As per the Co-Chairman and Chief Executive Officer of Monarch John Farahi, PCL has informed Monarch Casino that the up-gradation of the new project along with hotel tower, restaurants, retail area, and expanded casino will be completed in the third quarter of 2019, and the existing casino along with other amenities will be completed in the fourth quarter of 2019. The PCL Construction Services was sticking with the plan, but the delay could be seen in the latest financial report of Monarch, as per it now the construction service is planning to complete the project in 2020 first and the second quarter.
This news didn’t please the investors, and it was seen in the company’s stock which was down by 5% on Tuesday. The reduction in the company’s stock could be seen for the last five days. The last rise in the stock of Monarch was on August 30, which was $45.20. Till yesterday afternoon the stock was $41.94, and the amount went only up to $42.17 till the end of the day.
This was not the only reason for the fall of the stocks, but there are some other activities at the Monarch, which the investors are worried about. As per the Security and Exchange Commission (SEC), Monarch has a $250 million credit facility from August that needs to be managed properly, and this couldn’t be done without the completion of the project. As per the details of SEC, the loan of $250 million under the Amended Credit Facility, $50 million will be paid in the first quarter on the completion of Monarch Casino Black Hawk or on 31st December 2019 and the rest $200 million will be converted to a term loan as of now.
In the recent career fair, Monarch Casino has announced how they are impatiently waiting for the remodeling of the casino, and it aims to fill in 1000 positions at its new venue.
Monarch Casino is now looking forward with the completion of the project at the end of 2020 as it seems difficult for Monarch Casino keeping the new terms with PCL Construction Services.
Monarch Casino has said that it will respond to PCL’s Lawsuit with all the truths and defenses. They also added that Monarch Casino and Resort would continue to work with PCL till the completion of the Monarch Casino Black Hawk. The entire team of Monarch Casino Resort Spa Black Hawk was excited about the opening, but PCL’s performance has delayed their opening from the earlier announced date. They further said that the team of Monarch Casino Black Hawk would deliver best-in-class resort and hospitality destination from all the visitors across Denver.