Saturday, July 10, 2010

Tribal Payments To Mashantucket Pequot Tribal Members To End In Six Months

Feather News

The approximately $100,000 that each Mashantucket Pequot adult receives each year will be ending in six months, according to a letter by the Mashantucket Pequot Tribal Council which was obtained by The Day newspaper.

The Feather News has heard rumors to this effect for the past two months (from the flying man and the mystical artist) but it has not been reported publicly until today.

The Mashantucket Pequots have a $700 million credit line coming due next week and the Tribe is negotiating with their creditors over their inability to pay that off which seems to be the main reason why the Tribe has announced the end of tribal payments to its members.

Today's front-page article in The Day newspaper, written by Brian Hallenbeck who covers the local Indian tribes, reports, "The payments, which are made to adult tribal members, have been significantly reduced in recent years but ranged last summer between $90,000 and $120,000 a year, on average, a tribal source said at the time."

Although the Tribe owes more than $2 billion, the $700 million line of credit that is coming due next week was loaned to the Tribe by a banking syndicate led by the Bank of America.

The Mohegan Tribe, meanwhile, has a credit line of $800 million that was loaned to its gaming arm and which comes due in two years. According to Mohegan Tribal Gaming Authority conference calls with analysts, the Tribe hopes to have negotiated a plan with its creditors by the end of September. The Mohegan Tribal Gaming Authority's total debt is about $1.6 billion.

Were two of the principle partners for Trading Cove Associates, the Mohegan Sun's former casino management company that is currently receiving five percent of the casino's revenues as a result of a buyout agreement that ends in four-and-a-half years, demanding to be seen at the tribal government building this week?

Both tribes hold a casino monopoly in Connecticut and generate between $2 billion to $3 billion in revenues from the casinos on the two reservations.

Note: I read through a few dozen of the reader's comments on the article in Saturday's online edition of The Day newspaper. All of the comments had been removed by the following day when I checked the article again. In its place was the following statement from The Day, "Editor's note: The comment function has been disabled because a high number of the comments violated the policy."