Indian Gaming > Mashantucket Tribe close to gaming debt default

November 19, 2009

Mashantucket Tribe close to gaming debt default

The Mashantucket Pequot Tribal Nation of Connecticut is set to default on a $500 million loan, a move that could affect the tribal gaming market.

"The Mashantucket situation could set a precedent," Moody's Investors Service said, The Financial Times reported. "With casinos such as Foxwoods located on sovereign tribal land potentially out of reach of US bankruptcy law, it remains unclear whether creditors could enforce their rights."

The tribe reportedly owns more than $2 billion in debt incurred from the operation and expansion of Foxwoods Resort Casino and MGM Grand at Foxwoods.

Get the Story:
Troubled casino to test extent of tribal sovereignty (The Financial Times 11/19)
Foxwoods financial troubles worries lawmakers (NECN 11/18)