The Mashantucket Pequot Tribe announced that is has reached an agreement in principle with a majority of their senior lenders to extend until April 30 the sovereign Indian nation´s efforts to restructure its debt.
The proposed forebearance agreement was announced by the Tribe´s public relations firm yesterday, the original date by which the Mashantuckets were to have restructured their debt as agreed to in November when the Tribe missed a scheduled interest payment.
The creditors agreed not to pursue default rights against the Tribe for missed loan payments during the restructuring-forebearance period. The missed interest payment last November was on a $500 million bond package, only one piece of the Tribe´s total debt load of about $2.5 billion.
A $700 million revolving loan that is due this summer will likely be restructured.
The Tribe´s then-chairman Michael Thomas anticipated a likely default when he wrote to the Tribe´s members promising to pay them before the creditors in any debt restructuring, a move that led to Thomas being placed on administrative leave. Thomas did not seek re-election in the Fall.
The Tribe has since hired a public relations firm, Joele Frank, Wilkinson Brimmer Katcher, and has said that it would pursue a mutually beneficial resolution with its banks and bondholders.
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