The Mashantucket Pequot Gaming Enterprise (MPGE), owner of Foxwoods Resort Casino®, announced today that it has entered into discussions with its senior lenders to explore options as a result of its failure to comply with certain financial covenants in the Credit Facility.
The covenants were established last July as part of MPGE’s capital restructuring. At the time, MPGE and its lenders agreed upon a financial performance forecast that was premised on improved economic conditions and a leveling out of competitive factors. Those developments have been slow to materialize. In particular, the gaming industry remains weighed down by a sluggish consumer economy while the regional market is feeling the added effect of new competition and increased supply from surrounding states.
Foxwoods’ underlying business remains strong and day-to-day operations continue as usual and without interruption. Moreover, the failure to comply with the financial covenants does not adversely impact Foxwoods’ projected liquidity.
Meanwhile, the Tribe has continued to invest in Foxwoods’ business having recently renovated its guest rooms, refurbished the property’s retail and dining facilities, moved ahead with plans to open Tanger Outlet Mall at Foxwoods in May 2015, and recruited new team members to focus on growing the property’s revenue base. Along with an ongoing focus on operating excellence, these steps will position MPGE for success in its leisure time resort and gaming markets.
About Mashantucket Pequot Gaming Enterprise
MPGE owns Foxwoods Resort Casino, the largest resort casino in North America and one of the premier entertainment destinations in the Northeast. Foxwoods offers a vast array of gaming in six casinos, AAA Four-Diamond hotels, restaurants from gourmet to express, world-renowned spas, awarding-winning golf, state-of-the-art theaters, and exclusive retailers. Perfect for both recreation and business, Foxwoods provides modern and versatile convention and meeting space to infuse new life into any meeting or event. For a comprehensive look at Foxwoods Resort Casino and Mashantucket Pequot Tribal Nation visit Foxwoods.com.
About the Mashantucket Pequot Tribal Nation
The Mashantucket Pequots are a native Algonquin people in southeastern Connecticut who endured centuries of conflict and survive today on the oldest continuously occupied reservation in the U.S., dating to its establishment in 1666. As the first native people within the borders of the continental United States to suffer attempted genocidal massacre by Puritan Colonists in 1637, the Pequots and their repatriation is an unprecedented story of restoration exhibited in detail at the Tribe’s world-class Museum and Research Center (www.pequotmuseum.org).