Tribe that runs Foxwoods Resort Casino reach deal with lenders to delay debt repayment

Tribe that runs Foxwoods reach deal on debt

MASHANTUCKET, Conn. — The American Indian tribe that operates Foxwoods Resort Casino says it has reached a preliminary deal with most of its senior lenders to extend its current forbearance agreement until the end of April.

The Mashantucket Pequot Tribal Nation says that the agreement was originally set to expire Wednesday. Such deals occur when a creditor gives up the right to immediate repayment of a loan by a debtor under certain conditions.

The tribe has been seeking to restructure billions of dollars in debt after its casino business was hit hard by the economic downturn and increased competition.

The tribe says its efforts are “separate and distinct” from operations at Foxwoods and will not affect customers, employees, suppliers or business partners.

The tribe expects to finalize and execute a new deal “shortly.”