Indian Gaming > Mashantucket Tribe set to default on casino debt

November 17, 2009

Mashantucket Tribe set to default on casino debt

The Mashantucket Pequot Tribal Nation of Connecticut was unable to make a full payment on its gaming debt on Monday and said it won't be able to do so within a 30-day grace period.

The tribe owed a $21.25 million interest payment on a $500 million note, according to news reports. The tribe was only able to pay $14.2 million.

“The tribe does not currently anticipate the remaining amounts due will be paid within the grace period,” the tribe said in a statement, local media reported.

The tribe has been trying to restructure more than $2 billion in debt incurred from the operation and expansion of Foxwoods Resort Casino and MGM Grand at Foxwoods. The tribe said the facilities won't be affected by its financial woes.

The New York Post reported that billionaire Leon Black has been buying some of the Foxwoods debt. His private-equity firm owns Harrah's.

Get the Story:
Mashantuckets set to default on loan payment (The Norwich Bulletin 11/17)
Mashantuckets likely to default on key payment (The New London Day 11/17)
Black's crapshoot (The New York Post 11/17)