{"The SLS Las Vegas hasn’t turned a profit since opening in 2014 and is on the ‘’verge of bankruptcy,’’ according to a lawsuit filed in Los Angeles County by 60 Chinese nationals who lent money to the project in exchange for U.S. citizenship.
Chinese investors lent roughly $400 million in two nearly equal portions in 2013 and 2014 to help owners Stockbridge Capital Group and sbe Entertainment convert the Sahara on the north Strip into the SLS Las Vegas.
The loans were organized under the EB-5 Pilot Program that allows foreign citizens to potentially receive U.S. citizenship if they invest $500,000 in “at-risk’’ large-scale projects that create jobs. The five-year loans carried just a 0.5 percent interest rate. Each investor paid $45,000 in administration fees to invest in the project and must pay a yearly management fee.
None of the 60 individuals in the class action case have received their permanent green card, they say in a lawsuit filed Nov. 30 in Los Angeles Superior Court. All the investors contributed to the second portion, known as Phase II.
The plaintiffs are seeking $255 million in damages plus attorney fees and other costs."}
https://www.reviewjournal.com/business/casinos-gaming/sls-las-vegas-on-verge-of-bankruptcy-investors-allegeNo matter how much money some people have to invest, if it costs too much to go there, not enough people will visit your business.
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