RESTRUCTURING

RESTRUCTURE V. PLAN OR PROVIDE A NEW STRUCTURE, ETC. FOR

When you look at the debt of the MTGA (the Mohegan Tribal Gaming Authority), you come away with the conclusion, that no matter what they try, there is no easy way to fix the debt.

The debt for the Mohegan Sun Casino, Connecticut, and The Mohegan Sun at Pocono Downs, is estimated at about $1.6 billion ($1,600,000,000.00).

Brokenwing Editorials believes that cutting salaries and other things that the MTGA is doing will help the shortfall in funds, needed to run the Mohegan Tribal Government in the near future. It is not however, going to resolve the shortfall in income over the long haul.

The Mohegan Tribal Government needs to cut large salaries, not the small salaries they are cutting. Do we need a C,O.O.,and a Chief of Staff? Do we need an Administrator between the Cultural Department, Achieves, Archaeology, etc.? Do we need Administrators in Planning, Land Management, etc., when the Mohegan Government will not need to build anything, in the near future? How about people working for a dollar ($1.00) a year, like other businesses do when they get it a financial bind? If the businesses come back, the people get larger bonuses to off set the loss in salary.

Are these big salaries not being cut because government officials don't have the political connections after all these years? Could it be that the administrators are friends or relatives? I don't want to see anyone lose their jobs. However, it seems that the Tribal Council is letting people with low salaries go and keeping the very large salary jobs. What do you think?

The reality, in my opinion, is that we (the Mohegan tribe) have an anchor around our necks. The anchor is Pocono Downs. I do not believe it has ever made money and the way things are going it never will.

The proof is that when you add the two entities (Mohegan Sun Casino and the Mohegan Sun at Pocono Downs) in January had a loss of $3.8 million ($3,800,000.00). Not a loss compared to the year before for the same month but an actual loss.

What can be done about it? RESTRUCTURE. Either cut Pocono Downs loose as a separate company and /or sell stocks (shares of the business) to get out of the deal. another idea, might be to bring in a partner that could infuse about $200 to $300 million into the venture.

Another option, would be to restructure the casinos' entire debt. Maybe the MTGA should go to the creditors (the bond holders and banks) and offer them a percentage of what is owed. Donald Trump, I believe years ago, went to his creditors in Atlantic City and told them if they wanted to get paid that they have to absorb the interest and restructure the debt. I believe the creditors did exactly that. The way things are going the MTGA will never be able to pay off this debt.

It is time for the MTGA to earn its money and do what is necessary to protect the Mohegan tribe. What do you think?

Editorial Footnote: Check out the story, Five Tribal Councilors and how they voted.