Mashantucket Tribe drops per capita payments amid debt talks

Tuesday, July 13, 2010  

The Mashantucket Pequot Tribal Nation of Connecticut continues to negotiate an estimated $1.3 billion in debt and a decision to eliminate per capita payments could help address lenders' concerns.

The tribe's $700 million revolving credit is due today. Sources told The New London Day that the lenders are likely to give the tribe more time to pay as talks continue.

“The Tribal Council remains committed to working with its lenders to reach consensual resolutions," a spokesperson for the tribe told The Financial Times.

The per capita payments represent a significant chunk of the tribe's financial picture. According to the Day, the payments ranged between $90,000 and $120,000 last year.

Based on an adult population of 450, the elimination will save the tribe about $54 million a year.

Get the Story:
End of payments likely to hearten tribe's lenders (The New London Day 7/13)
Sovereign debt fears hit tribal casinos (The Financial Times 7/13)

Related Stories:
Mashantucket Tribe to eliminate per capita payments this year (7/12)
Mashantucket Tribe continues talks to restructure gaming debt