Burdened with more than $2 billion in debt, the Mashantucket Pequot tribe in Connecticut, owner/operator of Foxwoods Resort Casino, has decided to eliminate per cap payments to its members, according to a piece published on July 13 by The Day of New London, Conn. Payments are scheduled to stop at the end of 2010.
The article said it was not clear if it was a totally voluntary move by the tribe as it strives to restructure its debt or if it was pressured to do so by its senior lenders: Kien Huat, a Malaysian group that financed construction of Foxwoods, and a syndicate that provided a $700 million credit line, which matured on July 13.
A year ago, the monthly per cap payments, received by about 450 adult members, ranged from $7,500 and $10,000.
And I thought they were fighting about something really important on my rez...Some fighting is about to break out now with the Pequots!
ReplyDeleteThis should not be a shock to those who understand business and economics. What corporation do you know that pays any type of dividend to its stock holders when there is a down turn in their revenue? My respects to their Tribal Council for making and standing by a very tough decision. The membership needs to realize that their leadership is looking to the future.
ReplyDeleteI agree with you in regard to there needed to be some type of action taken that will show good faith to the lending partners. But this is much like divorce and that fact somebody has had access to a certain lifestyle for so long, so they still get compensated, not cut off. And for some of the tribal members it might be the only source of income. I would say some type of spin down system would be more appropriate. Beginning in September, cut half the payments, then in 6 months, cut it down to 1/4 payments through 2011. Then in 2012 eliminate all payments. To just cut families off in the long run will create more internal issues in the short run, as opposed to the long haul.
ReplyDeleteIt is time to learn how to live on a budget like the rest of us indians. It can only get worst due to the many other new casinos building up around the east coast. My tribe doesnt have a casino that pays dividends. Casinos have pros and cons now is the time to get an education and a savings account.
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