Foxwoods’ owners reach forbearance deal with lenders
NEW YORK - The Foxwoods Resort Casino’s tribal owners in southeastern Connecticut entered into a forbearance agreement with senior lenders that runs until Jan. 20.
The casino’s owner, the Mashantucket Western Pequot Tribal Nation, has been working with lenders for weeks to restructure the debt, the tribe said yesterday. Under a forbearance, creditors agree not to pursue default rights if payments aren’t made or loan conditions are breached.
“The tribal council remains committed to working with its lenders to reach consensual resolutions,’’ the council said. The casino has about $2.5 billion of debt.
The Mashantuckets placed chairman Michael Thomas on administrative leave last month, “pending the outcome of an internal review,’’ following comments he reportedly made about debt restructuring.
Thomas, who is seeking reelection as council chairman, told tribe members they would be paid before banks or bondholders in a financial restructuring, The Day newspaper of New London, Conn., reported Aug. 26. The newspaper cited an e-mail Thomas sent to members. The tribe later confirmed it was pursuing a restructuring.
The council backed away from Thomas’s comments on Aug. 28, when a spokesman said the tribe “will be pursuing a mutually beneficial resolution with its banks and bondholders.’’
