August 28, 2009
"News that the Mashantucket Pequots are in serious financial trouble nearly was overshadowed by the comments of the tribe's chairman, Michael Thomas, about the implications of their staggering debt.
Working with an independent investment bank, the Mashantucket Pequot Tribe is trying to restructure its $2.3 billion obligation to a more manageable figure, or about $1 billion less.
Informing fellow Pequots of the “dire” financial troubles in a recent letter, Mr. Thomas said while “earnings are down considerably and there are no signs of immediate improvement,” there will be no cutbacks in tribal government or reductions in “incentives,” the monthly payments Pequots receive, averaging $90,000 to $120,000 annually.
”What's the point of having these businesses if all that money goes to Wall Street and the Pequots can't pay their mortgages or buy medicine or food?” he asked.
Whatever the outcome of the debt restructuring effort, “Tribal Government and the Incentive will now be paid FIRST with any cuts or changes to our operation taking place after our members are paid,” Mr. Thomas said.
The chairman's reasoning is questionable, given that the Pequots may be near default on a $700 million line of credit."
Get the Story:
Editorial: Reorder priorities
(The New London Day 8/28)
Another Opinion:
David Collins: A new reality for tribal voters (The New London Day 8/28)
Also Today:
Mashantuckets' $2.3B debt restructuring could answer unknowns about Indian casinos defaulting (The New London Day 8/28)
Tribe's 'legacy debt' claim disputed (The New London Day 8/28)
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