Inn of the Mountain Gods misses payments, defaults on 12% notes

By Caroline Salls

Pittsburgh, May 25 - Inn of the Mountain Gods Resort and Casino has hired a financial adviser, and the Mescalero Apache Tribal Council is in negotiations with holders of the company's 12% notes due Nov. 15 in connection with missed interest payments, according to a 10-Q filed with the Securities and Exchange Commission.

Inn of the Mountain Gods said it has not made the scheduled interest payments on the notes since Nov. 15, 2008.

As a result, the company's failure to make the $12 million payments due May 15, 2009 and Nov. 15, 2009 triggered events of default under the notes indenture. Inn of the Mountain Gods also did not make the May 15 interest payment on the notes, but it has until June 15 to make that payment before a default occurs.

Under the notes indenture, the company is obligated to pay penalty interest on overdue principal at the rate equal to 1% in excess of the 12% interest rate and to pay interest on overdue interest installments at the same rate.

If the notes were accelerated because of the defaults, the company would also be in default on its furniture and equipment loans.

Inn of the Mountain Gods is a Mescalero, N.M.-based resort and casino owned by the Mescalero Apache tribe.

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