Wednesday, September 9, 2009

Thomas May be Ousted as Pequot Chairman

The Mashantucket Pequot Tribal Council could vote tomorrow to expel tribal chairman Michael Thomas from the council, according to the New London Day.

Thomas has been on administrative leave since August 31, “pending the outcome of an internal review.” On August 19, in a letter to tribal members, Thomas revealed the tribe's dire financial circumstances and his plans to deal with the crisis.

The council told Thomas they were “appalled” by his letter and that he had betrayed their trust. In the letter, Thomas pledged to preserve tribal government and incentive payments to tribal members before paying creditors. Under the tribe's constitution and by-laws, the council may, by a three-fifths vote, expel any council member “for neglect of duty or gross misconduct after due notice and opportunity to be heard.”

The Day reported on Thomas' letter in an Aug. 26 story that also reported the tribe, which owns Foxwoods Resort Casino and MGM Grand at Foxwoods, was nearing default and seeking to restructure $2.3 billion worth of debt.

3 comments:

  1. I do not know what to make of this story, it appears that the Chairman (Michail Thomas) is selfish for writing this letter to the tribe behind the councils back. But there is just not enough information for me to side with the council or chairman on which made the right call.

    Home you update the story soon.

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  2. The tribe is moving into dangerous territory and comments like his are just wrong.If you are going to default on debt it is not a good idea to say per cap comes before creditors.

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  3. totally irresponsible and the lightning rod will erode lenders interest in financing what has been a safe business for those that understand it....these are un-charted waters.

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