S&P: OpBiz on watch

Standard & Poor's said it placed its B- corporate credit and senior secured ratings for OpBiz LLC on CreditWatch with negative implications following the announcement by BH/RE, LLC that OpBiz will delay filing its 10-Q for the three months ended June 30.

S&P added that the delay is the result of ongoing negotiations between OpBiz and its contractors relative to the company's intention to enter into gross maximum price contracts for a substantial portion of the planned renovation work to the Aladdin Resort and Casino, which is ongoing.

Under the terms of these proposed contracts, OpBiz expects to make advanced payments to the contractors in exchange for a discount on the total cost of the renovations, S&P said, noting that these payments are expected to exceed the minimum spend requirements defined in the company's bank agreement, particularly the requirement that at least $72 million be spent by Aug. 31.

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