Foxwoods Casino Restructuring Debt

The NYT is reporting that Foxwoods Resort Casino in Connecticut has retained advisers to help it restructure its debt.

The Mashantucket Pequot Tribal Nation, the owner of the Foxwoods Resort Casino in Ledyard, Conn., said on Wednesday that it was seeking to restructure its debt, as casinos worldwide grapple with slumping business.

The tribe said in a statement that it has hired the investment bank Miller Buckfire and the law firm Weil, Gotshal & Manges to negotiate with its bank group.

“We have sufficient resources to continue to operate our businesses as normal, and it will be business as usual. We remain committed to providing our customers with unparalleled gaming options, the very best in entertainment, and world-class services, dining and amenities,” a spokesman for the tribe said.

While the casino is no doubt suffering due to the recession as are many others, this is also a story about excess capacity.

Foxwoods was one of the first Indian gaming facilities in the Northeast and was perfectly situated in Connecticut with Manhattan an easy jaunt away. It enjoyed tremendous success at it drew customers from all over the region. Naturally other tribes and states figured that what’s good for the goose is good for the gander and jumped into the business. They relearned the lesson that demand for any good or service is finite.

The recession will pass and business will pick up but the pie will still have been cut into much smaller pieces. Another “new normal” to grapple with.

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