Thursday, April 18, 2013
Chukchansi makes PARTIAL PAYMENT to Avert Another Default to Bondholders
Chukchansi Gold Resort & Casino has averted a financial crisis by making at least part of an overdue payment to bondholders, according to members of the American Indian tribe that runs the resort.
The Chukchansi tribe was at risk of defaulting on $300 million in bonds when Rabobank, which holds the proceeds of the casino, froze the tribe's account in the wake of infighting among tribal leaders.
Tribal members said Wednesday that they negotiated with the bank to release about $10 million toward their $12 million monthly bill for March.
Why the entire payment wasn't released was unclear Wednesday night.
But tribal members said they had informed creditors of the reduced amount and that bondholders weren't likely to seek immediate amends.
Read more here: http://www.fresnobee.com/2013/04/17/3262742/chukchansi-crisis-averted-for.html#storylink=cpy