Crown could default on debt if royal commission issues negative findings

Crown Resorts stated it could default on its debt if Victoria’s royal commission makes negative findings against Melbourne casino licence.

Despite a letter sent by Crown to Victoria’s gaming minister Melissa Horne last week, the operator’s executive chairman Helen Coonan denied any interference with the inquiry.

A redacted version of that letter is now public. It reveals that 12,000 employees at the operator’s Southbank venue could lose their jobs if Crown is at fault.

Also, if a default event occurs, “it may have severe consequences for Crown and all its stakeholders,” says Crown’s lawyer.

“This will affect Crown’s shareholders, employees, unions, trade creditors, patrons, the hotel precinct and the Melbourne tourism industry.”

A situation like this may also “provide potential overseas suitors with an opportunity to take advantage of the situation.”