December 14, 2008 / 10:57 AM / in 10 years

Elad, IDB seek to postpone Las Vegas loan repayment

TEL AVIV, Dec 14 (Reuters) - Elad IDB Las Vegas LCC is seeking to change the conditions of a $625 million loan it took out to purchase the site for a multi-billion dollar Las Vegas Strip project, a member of the group said on Sunday.

“In the light of the fact that the start of building of the project depends on the conditions of the credit market, the project’s firm is acting to extend the period of the loan,” Israel’s Property and Building Corp (PTBL.TA) said in a statement to the Tel Aviv Stock Exchange.

Property and Building Corp and its parent company IDB Development IDBD.TA own IDB Group USA Investments Inc, which together with the Elad Group jointly owns Elad IDB Las Vegas.

Elad, a private group belonging to Israeli billionaire Yitzhak Tshuva, owns New York’s Plaza Hotel and plans to use the Plaza name on its proposed $5 billion resort-casino in Las Vegas.

Elad IDB intends to continue with the planning work for the project and to begin building after it receives financing for the construction, the statement to the stock exchange said.

In August two investment banks postponed repayment of the $625 million loan Elad IDB took out in 2007 to purchase the now-demolished New Frontier Resort & Casino at a record high price of $1.25 billion.

Payment of the loan from Goldman Sachs (GS.N) and Credit Suisse CSGN.VX was deferred until May 2009.

A spokeswoman for IDB said the group was now seeking a further postponement.

Reporting by Tova Cohen

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