“This represents a critical step forward for our business,” said Foxwoods Chief Executive Officer Scott Butera in a statement. “It provides for a capital structure that will support significant investments in our gaming and hospitality businesses.”
Based on gaming space, Foxwoods is one of the largest casinos in the country and, in 2008, the resort opened an MGM Grand-branded casino hotel expansion. The opening of the expansion at the Connecticut casino came at a bad time, with the recession just beginning to affect gambling revenue and neighboring states beginning to open new casinos or offer table games.
For the fiscal year ending June 30, Foxwoods generated slot machine winnings of $614 million. This is a 5.5% drop from the previous year and much less than its peak slot revenue of $819 million in 2005, before the expansion was added.
Because the property is on tribal lands, it cannot be restructured in a Chapter 11 bankruptcy proceeding and lenders cannot foreclose on it.