LONDON (Thomson Financial) - Deutsche Bank is poised to take control of a troubled casino-hotel project in Las Vegas into which it has sunk nearly $1 billion, the Wall Street Journal quoted people familiar with discussions as saying.
The Cosmopolitan Resort Casino project got caught in the capital markets crisis and is heading towards foreclosure after property developer Ian Eichner defaulted on loans earlier this year, the newspaper said.
On Thursday, Eichner and representatives of Deutsche Bank were in discussions expected to end with the developer surrendering all involvement with the partially completed project, it said.
In recent weeks, Related Cos., a New York-based developer, has contacted the bank about possibly buying the project out of foreclosure.
But it remains unclear how much of its loan Deutsche Bank will be able to recoup, the Journal added. tf.TFN-Europe_newsdesk@thomsonreuters.com jms/sal COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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