Just wondering --
Wasn't a slot parlor supposed to save the dying greyhound race track in Rhode Island?
If lenders absorb the $290 million loss, does that mean that shareholders and taxpayers are subsidizing Kerzner and Wolman?
Twin River got 24/7 gambling which the host community, Lincoln, opposed in a referendum. When a Beacon Hill lawmaker insists that "Local Control" will be crafted into legislation, just remember Twin River. Local Control doesn't exist with the predatory gambling investors.
Is this what they mean by "Casino Capitalism" ?
BusinessWeek reported on the bankruptcy plan for Twin River --
The plan includes a new, 5-year, $300-million loan from UTGR's "first lien senior secured lenders" secured by a new claim on "substantially all of the Debtor's assets." The loan carries a minimum variable interest rate of 8.5 percent.
Lenders have given up on collecting approximately $290 million in debt owed by UTGR.
The plan also wipes $155 million in loans due to secondary lenders. The $155 million will be "written off" and those lenders will not recover anything when the plan is approved -- unless the slot parlor is sold off at a high profit.
Only about two-thirds of UTGR's roughly 300 unsecured creditors, among them the tradesman who fix equipment and the vendors who sell office supplies, will be paid in full. Unsecured creditors were owed about $4.1 million at the time of the June bankruptcy filing.
Those with claims of $2,500 or less get paid in full. Those with claims greater than $2,500 would receive 5 percent of their bills. However, they can opt to take $2,500.