From Bloomberg Report (miigwetch to K.C.):
Foxwoods Casino Owner Said to Seek Debt Restructuring
By Beth Jinks and Jonathan Keehner
Aug. 26 (Bloomberg) — Mashantucket Western Pequot Tribal Nation, owner of the Foxwoods Resort Casino, is seeking to restructure at least $1.45 billion in debt as winnings dwindle, according to a person with knowledge of the situation.
A restructuring plan has been submitted to creditors and the Connecticut casino’s owners have hired Miller Buckfire & Co., a New York investment bank, as an adviser, said the person, who declined to be identified because the talks aren’t public.
Foxwoods, one of the largest casinos in the U.S. by gambling space, may become the biggest tribal casino company to default. The operation has lost business to the recession and competition from new casinos and racetracks with slot machine-style video-lottery terminals in nearby states. Slot revenue fell 13 percent in July, the casino said on Aug. 14.
“They can’t do the types of things other debtors can in a restructure,” Megan Neuburger, an analyst at Fitch Ratings in New York, said today in an interview. “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.
Turtle Talk 