[credit provider=”Wikipedia” url=”http://en.wikipedia.org/wiki/File:Mohegan_sun_at_dusk_crop.jpg”]
HARTFORD, Conn. (AP) — Several struggling Indian-run casinos hit by the recession and new competition are trying to renegotiate their debt.Keith Foley, an analyst at Moody’s Investors Service, recently told investors that the parent company of the Mohegan Sun in Connecticut faces a “wall of debt” due early this year.
Foxwoods Resort Casino, also in Connecticut, seeks to restructure debt, and the Mescalero Apache tribe restructured $200 million in bonds last year for casino resort property in New Mexico.
Peter Kulick, a Lansing, Mich., tax and gaming lawyer, said Indian-run casinos expanded rapidly because they provide money for the tribes. He says the businesses survived economic downturns in the 1970s and 1980s and were seen as immune to recessions.
He says that was not the case in the recent recession.