Mashantucket Tribe negotiates to restructure $2B in gaming debt

Friday, September 17, 2010  

The Mashantucket Pequot Tribal Nation of Connecticut could be near a deal to restructure $2 billion in gaming debt, The Wall Street Journal reports.

The tribe's lenders offered a "middle ground" last week, the Journal said. Some bondholders have been willing to accept new repayment deadlines and to stop receiving interest on the tribe's debt for the time being.

The tribe has already failed to make a $7 million interest payment on $500 million in bonds. The deadline on a $700 million line of credit passed in July without action.

Meanwhile, revenues at Foxwoods Resort Casino and MGM Grand at Foxwoods have continued to fall. The tribe has eliminated jobs and cut per capita payments to its members amid the economic crunch.

Get the Story:
Tribe's Roll of Dice Rattles Lenders (The Wall Street Journal 9/17)