Foxwoods Implodes

From Bloomberg --
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Thomas told tribe members they would be paid before banks or bondholders in a financial restructuring.... [smart move!]
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Lenders may “retrench” from American Indian gaming if a restructuring impairs existing creditors while protecting tribal cash distributions, Moody’s Investors Service said yesterday. That would make “it difficult for other Native American gaming issuers to raise additional funds in the capital markets,” the debt-rating service said.
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Moody’s and Standard & Poor’s cut their ratings on Mashantucket’s estimated $1.5 billion of debt by four steps on Aug. 26 and said grades could be lowered further.