Mohegan Tribal Gaming Authority, the parent company of Mohegan Sun casinos in Connecticut and Pennsylvania, says it failed to reach an agreement to refinance the debt, but lenders have waived any possible default.
The Tribal Gaming Authority said that a delay in refinancing debt was among conditions that “raise substantial doubt about our ability to continue as a going concern.”
Mitchell Etess, chief executive officer of the authority that owns and operates the Mohegan Sun in Uncasville, Conn., and Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa., said yesterday the dire warning is a financial requirement of auditors.
Paul Burns, Town Council president, said the news reports about the debt are concerning, but he continues to remain confident in Mohegan’s ability to fund the Palmer casino project. He said Mr. Etess just this week reaffirmed the Tribe’s commitment to entering into an agreement with Palmer as early as next spring. He said Mohegan is not poorly managed, but was just hit hard by the recession.
“I expect that over the next few weeks they will be able to resolve the refinancing issue and will soon be able to secure the funding necessary for the Palmer Casino,” Mr. Burns said in a telephone interview yesterday.
“It is my understanding that the statement of concern is a required next step in the refinancing process. The fact that Mohegan Sun was granted a default waiver indicates to me that at this time there is no significant concern on the banks’ part regarding Mohegan Sun’s financial viability,” he continued.
Mr. Burns said that, unlike residents in Foxboro who are divided about a proposal to build a casino across from Gillette Stadium, most Palmer residents want to have one of the three casinos approved for the state.
“The community is on board. We’ve done a lot of homework. We’re ready,” Mr. Burns said.
Material from The Associated Press was used in this report.
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