Mohegan Sun Casinos Fail To Refinance

The parent company of the Mohegan Sun casinos in Connecticut and Pennsylvania says it has failed to reach an agreement to refinance $811 million in debt.

The Mohegan Tribal Gaming Authority said the delay in refinancing could “raise substantial doubt about our ability to continue as a going concern” but added that lenders have waived a possible default.

Mitchell Etess, CEO of the authority, said the dire warning is only a financial requirement of auditors.

“Auditors have no choice,” he said. “They must put in that language.”

Etess said the waiver was a vote of confidence by lenders, adding that the authority’s fourth-quarter income was $46.7 million compared with a loss of $26.3 million in the year-ago period.

Meanwhile, Mashantucket Pequot Tribal Nation in Connecticut has restructured billions of dollars in debt after its Foxwoods casino was hit by the economic downturn. Last month, the Mississippi Band of Choctaw Indians received a six-month extension on loans.

A report issued in March said that for the first time, revenue fell in 2009 at American Indian gambling casinos nationwide as the recession hit.