Forum Archive Index - November 2001

["Philip Robinson" <pcr@ihug.co.nz>]

Title: Message

Sky City Pours Money Into Venture
Jenny Ruth
Casino operator Sky City remains upbeat about its $20 million investment in cinema operator Force Corp. It still plans to support its $31 million rescue package despite Force's plans to use some of the rescue funds to increase its equity and reduce its debt in its Argentinian joint venture.

Argentina's economy is deteriorating rapidly. Argentina's government yesterday said it will default on at least $US38 billion in international debt. Argentina's bonds are already rated lowest in the world by Moody's Investors Service.

Yesterday, the 2005 floating rate bond was trading at a record 41.2%.
Between July 1997 and the end of December last year, Force pumped $61.6 million into Argentina. Earlier this year it wrote off $43.9 million, mostly from its Argentinian assets.

Its latest plan is to pour up to $US6.5 million more in to Argentina.

Sky City, which announced a two-for-one share split at yesterday's annual shareholders' meeting, says it remains "confident we will achieve our investment objectives with Force. Once the necessary capital restructuring of Force has been completed, we are confident the results of Force and the synergies we anticipate for Sky City will demonstrate the validity of this investment initiative."

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