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Largest Indian casino in $1.4 billion debt

Discussion in 'Political Zone' started by Jon88, Sep 1, 2009.

  1. Jon88

    Jon88 Benched

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    Largest Indian Casino Struggling With Debt
    No Tribal Casino Has Tested Bankruptcy Laws

    POSTED: 9:30 pm EDT August 31, 2009
    UPDATED: 10:40 pm EDT August 31, 2009


    MASHANTUCKET, Conn. -- The world’s largest Indian gaming casino is juggling a known debt of $1.4 billion.

    The Mashantucket Pequot Tribal Nation has a loan payment due Tuesday and members of the tribe met Monday to discuss the situation.

    Foxwoods Resort Casino is one of the largest casino destinations in the world and is owned by the Mahantucket Pequot Tribe and partners with MGM in the MGM Grand Casino on the sprawling reservation in Ledyard.

    The downturn in the economy has had a tremendous impact on the gaming industry. In July, the casino said slot revenue dropped 13 percent compared to a year ago.

    Tribal members met in closed door meetings Monday as attorneys, communication specialists and financial experts worked on a debt restructuring plan with creditors.

    “We still have a steady flow that comes regularly, but as far as many buses coming through here, there’s not,” said employee Teresa Ellis.

    According to one ratings expert in New York, tribal casinos can’t do a debt for equity swap. They can’t raise cash by selling off assets on tribal land to repay creditors.

    “Across the board, anyone who invests in tribal debt, banks and bonds, the whole financial community is looking at how this plays out,” said Megan Neuburger, analyst at Fitch Ratings.

    Last week Standard and Poor cut its Mashantucket rating and placed the tribe’s debt on credit watch.

    No tribal casino has tested bankruptcy laws.

    Last week, the chairman of the tribe, Michael Thomas, reportedly indicated that the tribal government would be paid before bankers or bondholders.
  2. iceberg

    iceberg detoxed Zone Supporter

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    so i wonder what a casino bailout plan will look like. :)
  3. ABQCOWBOY

    ABQCOWBOY Moderator Staff Member

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    I have some familiarity with this Casino. I do not believe, for one minute, that they are in real trouble. They may have decided to walk away from this business, for whatever reason, but they have made more money on this Casino then anybody can imagine.
  4. DIAF

    DIAF DivaLover159

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    Looks can be deceiving. Who knows what other pies they have their fingers in?
  5. Rogah

    Rogah Well-Known Member

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    Believe it or not, I used to work as a blackjack dealer at this very same casino, and I have to echo ABQ's point here. They've been making money hand over fist for almost 20 years now. I don't believe for a single second they are in real trouble. Just last year they opened a brand new hotel on the premises built in a partnership with MGM and it is called the MGM Grand at Foxwoods. Their nearest (and only) competitor, Mohegan Sun, is building another hotel on their campus as well.

    I have no doubt that they are simply angling to get some reduced debt payments or maybe a reduction in the amount of money they have to pay to the state.

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