Projo 7 to 7 News Blog

The Twin River slot machine parlor this afternoon said its lenders extended their financing arrangement with the Lincoln gambling venue until Jan. 31.

The slot parlor will suspend interest payments to some of its lenders until then, an action Twin River said is needed to conserve its finances.

"However, the suspension of interest payments to the junior secured lenders allows them to take certain actions under their agreements that could result in a bankruptcy filing shortly after the expiration of the forbearance period."

The slot-parlor's owner, UTGR Inc., has negotiated for months with its lenders to rework $577 million in financing. The two sides entered into a pact, known as a forbearance agreement, which allows the company time to work out payment plans with its lenders and creditors. The agreement expired Aug. 29 without a new deal being reached.

State officials have hired two consultants to advise them on operations at Twin River, because gambling is the third-largest source of state revenues. Negotiations over Twin River's debts came after the slot-parlor's owners missed a loan payment in March.

Journal staff writer Paul Grimaldi

 Tags  Lincoln Twin River

Comments

Dan said:

Blub....Blub.....Blub Is that the sound of RI's anti-Indian gambling venture going down the drain?

Link | September 12, 2008 5:51 PM
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Papa said:

Aw Gee, the slot sewer might tank?

My bet, it's a ploy to get the percentage given to the State reduced.

And my sure bet is that the suckers in the Legislature will buy into it. Hope the Governor stands firm.

Link | September 13, 2008 4:39 AM
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