Indian Gaming Now

Foxwoods

Harrah's Parent Company Rumored to Buy Foxwoods Debt

Posted by Kathryn Rand | Filed under:
Nov 30 2009
According to the Norwich Bulletin, Apollo Management, the parent company of Harrah's Entertainment, is considering buying the Mashantucket Pequot Tribal Nation's casino debt.

Because of the public nature of Indian gaming, the deal wouldn't work exactly like it might in private industry.  Federal law -- namely, IGRA -- prohibits any entity other than a tribe from owning an Indian gaming operation.  So, this isn't a potential takeover.

Still, Apollo could buy the debt at a reduced price, and profit by selling the debt when Foxwoods' profits return to pre-recession levels.  Notice the "when," rather than "if" -- industry experts are optimistic about the gaming industry bouncing back from the recession, talking about recovery as a matter of time.

Slipping into Bankruptcy? Foxwoods Struggles With Debt as Gaming Revenue Slumps

Posted by Kathryn Rand | Filed under:
Sep 3 2009
The infamous Foxwoods Resort Casino is one of the largest casino resorts in the world.  Owned by the Mashantucket Pequot Tribe, it is one of two tribal casinos in Connecticut and is one of the most profitable Indian gaming operations in the country.

But Foxwoods has felt the recession.  As we noted in earlier posts, it laid off 700 workers last fall.  Its profits are down 13% in July as compared to last year.  And it has a $700 million line of credit that's coming due.

The Tribe is seeking to restructure its debt, hiring the law firm of Weil, Gotshal&Manges and the investment bank Miller Buckfire to negotiate the restructuring, according to the New York Times (Foxwoods Owner Wants to Restructure Its Debt, 8/27/09).