Foxwoods Casino Defaults, Hurts Credit

Casino News - November 18th, 2009 - Written by Glen

One of the largest casinos in the world, Foxwoods, has recently failed to meet a debt deadline. Their failure to make a full payment resulted in a default, subsequently weakening their credit.

The Manshantucket Pequot Tribal Nation, proprietors of Foxwoods, stated that they paid $14.2 million toward their $21.51 million semi-annual interest payment. This payment was due Monday on their $500 million dollars debt. They claimed that they are not expecting to pay the remaining balance within their thirty day period.

The default has brought Foxwood's credit rating to a D with the firm of Standard & Poors. This is their lowest possible rating, and may make receiving another loan problematic for Foxwoods.

Foxwoods Resort Casino is the largest casino in the nation, employing more than 10,000 and boasting over 7,000 different gambling machines. With over $700 million in profits last year, speculation surrounds why Foxwoods has defaulted on their payments.

The possibility of Foxwoods closing is not very likely, according to Standard & Poors' Managing Director, Craig Parmelee. "I don't think shutting down the casino is the best route to meeting the goals of either party," Parmalee was quoted at saying.

Forbearance has already been enacted by Foxwoods with their senior lenders, and is to extend through January 20th.

Thankfully, Legal USA Online Casinos will not be disappearing due to debt.

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