Foxwoods Receives Reprieve on Debt
The Hartford Courant
6:03 p.m. EDT, October 26, 2009
The deeply indebted owners of Foxwoods Resort Casino said Monday that they have reached a deal with creditors that appears to offer some temporary relief.
The Mashantucket Pequot Tribal Council issued a statement saying that it "has entered into a forbearance agreement with its senior lenders" that extends through Jan. 20.
The Tribe did not say how much debt the forbearance applies to or offer any other terms, and said it would not comment further until discussions with creditors are finished.
The tribe, which does not publicly disclose its finances, has reportedly been trying to renegotiate more than $2.3 billion of debt, a situation that has led credit rating agencies to downgrade the tribe's creditworthiness.
In its statement, the tribe said it "remains committed to working with its lenders to reach consensual resolutions."
Last month the Pequots placed Michael Thomas, Chair of the Tribal Council, on administrative leave "pending the outcome of an internal review." Citing a memo from the six other council members to Thomas, The New London Day has reported the council ousted Thomas because he issued a letter Aug. 19 to the tribal membership in which he described his own plan and stated his own opinions about the financial crisis.
Foxwoods and MGM Grand at Foxwoods, which opened with a hiring spree in May 2008, employ a combined 9,000, down from 11,000 last October. The recession has hurt revenues at both Foxwoods and its nearby rival, Mohegan Sun.
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