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« R.I. fishing season opens in three weeks | Today | RISD's outgoing Mandle to move on to Qatar » March 21, 2008Twin River debt rating drops againThe company that owns the Twin River gambling facility in Lincoln got another week from its lenders to work out its financial problems, but that wasn't enough to prevent its credit rating from being downgraded for the second time this month. UTGR Inc., which owns Twin River, missed a loan payment earlier this month, prompting negotiations with its lenders and collection efforts by contractors that worked on the building’s $225-million reconstruction. UTGR and its lenders entered into a pact, known as a forbearance agreement, which allows the company to work out payment plans with its lenders and creditors. That agreement was set to expire today. The two sides agreed to extend the pact for a week, according to Twin River spokeswoman Patty Doyle. "Credit ratings by their very nature are very conservative," Doyle said. "We've made tremendous progress with our lenders this week. We're quite hopeful we will reach a long-term agreement with [them]." The missed payment had already triggered one ratings downgrade on UTGR Inc. by the Standard & Poor’s Corp. ratings unit, The Providence Journal reported. On March 4, S&P lowered UTGR's rating to B- from B+, and placed the ratings on its "CreditWatch" list with negative implications. S&P went further today, lowering UTGR's rating to CCC-, or "junk" status. "The downgrade reflects our ongoing concerns about a potential bankruptcy filing as the company reportedly continues to negotiate a forbearance agreement with its lenders. While we believe that incentives exist for the company and its lenders to reach an extended agreement, the new ratings better reflect the near-term risk factors for a potential bankruptcy filing if the parties are not able to come to an agreement." The facility, which includes video slots, a dog-racing track and restaurant and entertainment offerings, is operating normally at this point. Beyond serving its customers, Twin Rivers contributes to gambling revenues in the state's budget, and revenues have been up this year. Altogether, the state expects to take in about $243 million from Twin River’s video slot machines for the year that will end June 30, and about $256 million for the year that will start July 1.
Posted by Paul Grimaldi CommentsBill Malloney | March 21, 2008 4:58 PM link In order for twin rivers to survive and be competative, it has to be able to offer table games, high stakes bingo, and a poker room!!! richard lafontaine | March 21, 2008 5:08 PM link As I was reading this story I was thinking to myself "I am going to post a comment" and when I got to the comments and noticed Bill took the words right out of my mouth. Couldn't agree with you more, Bill. Josh | March 21, 2008 5:52 PM link Clearly Massachusetts got it right no casinos to stimulate the economy. Dave | March 21, 2008 6:07 PM link Another ditto of Bill's comments. It's just game playing, holding feet to the fire to get what they want (today), 24-hour gambling. What will tomorrow bring? Will the casinos next have to have strippers, opium dens, prostitution, S&M clubs, child pornography, to make ends meet? Where does it all end? Just say no. This country and this state got along just fine for a few hundred years without these scum-sucking dens of iniquity. End it NOW. You don't have to go home, but you can't stay here. | March 21, 2008 6:43 PM link Why should anyone care with what adults decide to do with their money? Are we to believe that if they open for 24 hrs that their will be "strippers, opium dens, prostitution, S&M clubs, child pornography, to make ends meet? Where does it all end?" Don't people have the common sense to not do opium? Doesn't R.I. have enough strip joints? What kind of logical point is that? I for one am tired of the Government whether it at the State or Federal level. I am a responsible adult and expect others to behave that way. Clearly this a ploy to get the 24 hrs sanctioned and again why not? A gambler will gamble a drug addict will do drugs etc etc Dave | March 21, 2008 10:37 PM link Bill is right Alan | March 22, 2008 12:46 AM link Twins Rivers is losing money and will close soon. They can't pay their bill's that they owe, and their credit rating is in the cellar. Rhode Island can't afford to look toward any gambling establishment for tax relief. Gambling is not the way to solve our problems. Ray R. Hogarth | March 22, 2008 4:12 AM link Typical Rhode Island KK | March 22, 2008 6:34 AM link what is the harm if you can go to foxwoods and play all night why not here R.I needs the money just like the indians and we need our jobs so don't you be judgemental and say well we don't need a casino or 24/7 at twinriver becauce we do or if you don't understand people we will eat the 10 million dollars we pay the indians a year that will come out of our pockets some how someway alex | March 22, 2008 7:12 AM link Post a commentPlease be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish. |
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ProJo 9 to 5 News Blog
Oct 2005 - March 2006
To me it is quite obvious that this is simply a ploy by Twin River to leverage the State of RI into allowing them to be open 24 hours a day. What other explanation could there be. As noted in Fridays article by Paul Grimaldi revenue from Twin River to the state of RI are up. The pawns as usual are the workers at Twin River who have lost their jobs and the employees who are still there that have been asked to take pay cuts and shorter work hours. We all know that the state will eventually relent and give Twin River its 24 hour a day operation, get on with it already.