Nazar­ian back on top at SBE

Los Angeles Times - - BUSINESS - By Hugo Martin hugo.martin @la­ Twit­ter: @hugo­martin

He re­turns as Cain Hoy prin­ci­pals leave SBE’s board of di­rec­tors.

Sam Nazar­ian, the hos­pi­tal­ity and night­club mogul who stepped down last year as head of his com­pany af­ter ad­mit­ting to co­caine use and al­co­hol prob­lems, has re­turned to head SBE En­ter­tain­ment Group.

In an­nounc­ing his re­turn, Nazar­ian noted that three prin­ci­pals from the pri­vate eq­uity group Cain Hoy En­ter­prises have left the com­pany’s board of di­rec­tors.

The three prin­ci­pals — Cain Hoy Chief Ex­ec­u­tive Henry R. Sil­ver­man and se­nior part­ners Thomas D. Christopoul and M. Ali Rashid — joined SBE in De­cem­ber as part of a re­cap­i­tal­iza­tion plan that in­cluded a $167-mil­lion loan. Cain Hoy also of­fered to in­vest $500 mil­lion in fu­ture SBE projects.

A state­ment from SBE did not say why Sil­ver­man and the Cain Hoy part­ners quit or if they re­tracted the $500-mil­lion in­vest­ment of­fer.

Nazar­ian stepped down in De­cem­ber af­ter telling the Ne­vada Gam­ing Board that he had used co­caine and was strug­gling with al­co­hol abuse prob­lems.

The board agreed to give Nazar­ian a gam­ing per­mit for his new SLS casino in Las Ve­gas on the con­di­tion that he un­dergo regular drug testing.

In his state­ment, Nazar­ian de­scribed his time away as a “sab­bat­i­cal” and said he was ex­cited to ex­pand his com­pany.

SBE also an­nounced plans to man­age five re­sort ho­tels built by Mex­i­can real es­tate de­vel­oper Ar­mar Group in Cabo San Lu­cas, Puerto Val­larta, Mex­ico City and Punta Mita.

Ja­son Mer­ritt Getty Images

David Becker Getty Images

SAM NAZAR­IAN stepped down from SBE En­ter­tain­ment Group in De­cem­ber af­ter telling the Ne­vada Gam­ing Board he was strug­gling with al­co­hol prob­lems.

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