Foxwoods Rescued Already
Last week we saw that Foxwoods missed a loan payment and was having financial troubles like the rest of the casino industry. As the week ended they took care of that problem and got funding from the same people that brought Harrah’s private, Appollo Group. Because Foxwoods is controlled by a Native American tribe, this isn’t a typical investment.
Leon Black, who heads up Apollo Management L.P. of New York City, has been buying up the Mashantucket Pequot Tribal Nation’s debt, the New York Post reported this week. Both the tribe and a spokeswoman for Apollo declined comment on the report….
…”Often, when an investor purchases debt of a company who has defaulted, it’s some effort to have a controlling position in a bankruptcy,” Parmalee told The Day newspaper in New York. “In the case of a tribal situation, that is not possible, because you have to be the tribe to operate Foxwoods casino. So, my guess is (Black) may just look at this at a good investment.
I’d have to imagine there is some kind of agreement that makes this a good investment for Appollo Group. Because this isn’t a traditional deal we will probably never know true terms which is fine by me. The thing that matters most to me is that the casino stays in business and keeps competition strong in Connecticut.
Maybe someday Foxwoods will make commercials as awesome as Mohegan Sun.
this is interesting, due to all the HET properties a couple states away in AC. Almost like Apollo wants the competition to stick around so that the AC properties have to put their best feet forward.
Also telling that MGM/Mirage wasn’t the company to step up and invest in Foxwoods, considering they’ve got a hotel/resort there already. Guess they don’t have the $ b/c of City Center.
You’re completely off the mark on this one. Apollo bought the bonds from third parties, not from the Tribe or Foxwoods.
Larry, thanks for passing that along. I didn’t see that information in any of the 3 articles I read.