Foxwoods discussing bankruptcy

(CNN 9/1/09) ) 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.

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

Paid with what?? this action threat will result in the end of ANY type of investment on ANY tribal lands from ANY outside source.

Not to far away from there and enjoy there poker room netime i get the chance... I didnt know about this and hope they come to some kind of solution soon..

I'm assuming debt was accrued from expansion?

They won't be foreclosed on because the property is worthless to outsiders, I'm assuming?

I'm obviously in an assuming mood lol.

Being from overseas I don't really understand how the Indian tribe aspect of this affects things.

But I'd be surprised if the parties that are owed money won't be willing to negotiate a payment plan to keep the place open. I mean it's a casino, and a large successful one at that. It'll go back to making money eventually and everybody will get paid unless the management is grossly, grossly incompetent.

ill go to foxwoods and lose a few Million to help them out,,lol buck

Indian tribes are self-goverened (kinda). The casinos are there because the federal goverment allows it-not the states they are in. They can not just sell the casino-the tribes must own it. Yes-they are allowed partners to build, run it but the tribe is still the owner. This is why they cannot do a debt for equity swap.

Also, not only did the economy hurt them but also the state of PA just allowed slots. This has not only hurt them but also AC.

hey buck y dont u come over to england n loose a few million to me 1st?

ill get a few beers in and a BBQ on the go. Make u feel riiiiiiight at home lol.

LOL,, actually today my son & his wife went to foxwoods, guess its his B-Day present from her, hes not really a gambler, so he might lose $50. or so bucks, and she plays bingo there,, maybe they`ll get lucky today,, buck

I know a good many 'poker players' who play bingo and win.

That's unfortunate to hear. I used to go there all the time when I lived in the area. To those who haven't been, it's a very unique experience.

However, I can understand their plight. When they first opened, they were basically the only casino outside of Vegas or Atlantic City. Mohegan Sun soon followed, and then casinos popped up all over the place. It looks like they may finally be making a casino legal here in Cleveland. But, all the gambling money going in so many different directions is going to have an effect on those who were there in the beginning.

I'll definitely make sure to make my donation to Foxwoods the next time I'm up in the area.