Mashantucket Pequot Tribe to miss payment, in talks with committee

By Caroline Salls

Pittsburgh, Aug. 31 - The Mashantucket (Western) Pequot Tribe will not make the Sept. 1 payment on its series 2006A and series 2007A subordinated special revenue bonds, according to a notice to bondholders from trustee UMB Bank, NA.

The trustee said the tribe is in discussions with an informal committee of bondholders, noteholders and bond insurers regarding Mashantucket's financial difficulties and missed debt service payments.

GLC Advisors & Co., LLC, has been engaged as financial adviser to help the committee analyze the business of the tribe and its casino project and develop options to maximize the value for all of the bondholders and insurers.

According to the notice, the tribe has failed to make debt service payments on its subordinated special revenue bonds since September 2009.

As a result, there will be no funds to make the Sept. 1 payment on the 2006A and 2007A bonds.

The trustee said the tribe's series 1997B, 1999A and 1999B bonds are partially secured by debt service reserve accounts. However, the $94,890 on deposit in these accounts is not enough to make the full Sept. 1 payment on those bonds.

Holders of 1999B bonds will receive $26.828 per $1,000 of bonds, and holders of 1999A bonds will receive $1.656 per $1,000.

The series 1997B bondholders will receive their full Sept. 1 interest payment from a reserve account with a $6.58 million balance.

The Mashantucket Pequot Tribal Nation owns and operates the Foxwoods gaming facilities in Connecticut.

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