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Posted on 08/14/2014 5:13:24 PM PDT by Third Person
Mashantucket — Acknowledging its failure to meet the terms of a loan agreement reached in July 2013, the Mashantucket Pequot Tribe, owner of Foxwoods Resort Casino, announced Thursday it’s exploring its options with senior lenders.
In a news release issued shortly after 4 p.m., the tribe said it had entered into discussions “as a result of its failure to comply with certain financial covenants in the Credit Facility,” a reference to the agreement between the tribe and Bank of America, N.A.
Scott Butera, Foxwoods’ president and chief executive officer, indicated he could not comment on the talks. Earlier in the day, Foxwoods posted its quarterly report for the period that ended June 30. The casino reported that in April, May and June, EBITDA — earnings before interest, income taxes, depreciation and amortization — totaled $33.0 million, down $23.3 million, or 41.4 percent over the same period the previous year.
“We believe that consumer spending patterns remain challenging in our primary markets, particularly in the mass and mid-tier market segments,” the report says. “As well, competitive pressures continue to be impactful, both from the expansion of gaming and marketing activities, in the Northeast gaming market.”
The tribe defaulted on a debt of $2.3 billion in 2009, leading to a series of forbearance agreements with lenders and a debt-restructuring process that concluded more than 13 months ago. The resulting agreement enabled the tribe to exchange its outstanding debt for $1.7 billion in new debt.
“At the time, (Foxwoods) and its lenders agreed upon a financial performance forecast that was premised on improved economic conditions and a leveling out of competitive factors,” the tribe said in its news release Thursday. “Those developments have been slow to materialize.”
“Foxwoods’ underlying business remains strong and day-to-day operations continue as usual and without interruption,” the tribe said. “Moreover, the failure to comply with the financial covenants does not adversely impact Foxwoods’ projected liquidity.”
The tribe said it has continued to invest in Foxwoods despite the pressure on revenues. The casino has recently renovated hotel rooms and refurbished its retail and dining facilities. An outlet mall linking the original Foxwoods property to The Fox Tower, formerly MGM Grand, is scheduled to open in May 2015.
But the casino has also downsized its workforce in a bid to save on payroll costs. For the nine months that ended June 30, it employed the equivalent of 5,800 full-time workers, which is 9.6 percent less than during the same period the previous year, according to the quarterly report.
In June, Foxwoods curtailed weekday hours on a portion of its gaming floor.
“We believe, over the long term, that our focus on elimination of unprofitable lines of business and reinvestment in quality patrons will lead to a sustainable level of profitability,” the casino says in its report.
Yet no matter how many casinos go broke, they are constantly touted as the answer to every financial woe.
Well good luck playing the slots at Foxwoods. They must have their slot machines wrapped tighter than Hillary Clinton’s underwear.
Mohegan Sun is kicking their ass.
FWIW, Foxwoods is nice, not just for gamblers, but as a place to spend a few days. I hope they work it out.
Connecticut economic wasteland ping.
Let’s see. The MSM pimps and pimpettes have stated that the economy is ready to take off gangbusters but casinos and resorts are folding or heavily discounting. Seems like the MSM patter and reality are growing steadily apart.
This must be a problem across the industry in the Northeast. They just closed one of the newest casinos in Atlantic City due to their financial troubles, and the creditors are apparently getting no offers for the $2B+ boondoggle. The governor of the state is holding a meeting of all the casino owners next week to figure out how to save the rest of them from bankruptcy.
“This must be a problem across the industry in the Northeast.”
And the idiot governor of MA,Devil Patrick,wants to bring gambling to the state.
.
I used to work at Mohegan - just up the street.
Modern slot machines are computerized. When you drop your money in - the next 100+ pulls are already programmed in. By law - a certain number of wins are programmed into those pulls. The bigger the bet - the bigger the payoffs.
They must return X% back to the gambler in wins. I don’t know the algorithms - but anyone that plays the $20.00 slots will win bigger because the odds are more favorable than the nickel slots. Of course you need to have hundreds of $$ to play the big dollar slots.
If your goal is to sit all day and spend $15.00 in nickels to win back $10.00(if that) - nickels are the way to go.
You can be that 1 in 10,000 or higher that hits it big, but the house exists because it owns the odds.
Interesting. So if I put a $100 bill into a slot machine instead of say, a $10 bill, and played max bet, I would get a higher payout?
In the longer term, statistically yes.
LOL! I worked at Foxwoods back in 95, maybe? It was during the time the Sun was just opening. Foxwoods machines were always tight IMO. Mohegan was much better.
I was under the impression that slot machines worked by random RNG generators that are simply ‘looser’ or ‘tighter’ depending on how many winning combinations are allowed. Like if the RNG hits a 1 out of 100 (I know in real life it’s in the millions or more) it’ll pay the jackpot, a 2-5 something less, and so on. That’s how the experts say they’re supposed to work and that each play is independent of the last.
He’s a moron. Casinos in Atlantic City are in trouble, too.
"His African-in-heat father went a-whoring after a trashy white woman," said Manning, who is a proclaimed Clinton supporter. "[Obama] was born trash."
"He got started -- you didn't notice him 'til he brought out those big-chested white women with their tight T-shirts and their short pants," said Manning about how Obama started his campaign.
"That's what a pimp does.
He's a mack daddy. He pimps white women and black women. Obama is a long-legged mack daddy."
"Barack is an emissary of the devil...I'm your last hope"
They need to call on their “native sister”, Senator Warren.
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