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April 1, 2008

Lenders extend deadlines on Twin River's debt

The lenders who financed the purchase and renovations at the Twin River slot parlor gave the Lincoln facility's owners more time to rework their finances.

The lenders have been pressuring Twin River's owner, UTGR Inc., since the company missed a loan payment early last month. The two sides have been negotiating for weeks under a standstill agreement that delayed legal action to collect payment on $577 million in outstanding loans tied to Twin River's operation.

The standstill pact, known as forbearance agreement, was extended twice while negotiations continued. It's now been extended a third time, unil June 30, with options for two additional 30-day extensions.

In effect, Twin River has until Aug. 29 to work out a "permanent financing structure" that would satisfy the lenders, according to Patti Doyle, a spokeswoman for the slot parlor. It also has more time now "to establish a payment schedule with our other creditors, chiefly Dimeo Construction Co.

Dimeo was the primary contractor on the slot parlor's $225-million reconstruction project. The Providence contractor recently placed liens on the property seeking $6 million for some of that work. Other contractors followed Dimeo's lead, filing liens for more than $1 million in all.

The slot parlor’s inability to make the loan payment last month triggered two ratings downgrades on UTGR by Standard & Poor’s, which now rates the company's corporate debt as CCC-.

Posted by Paul Grimaldi  at 4:29 PM | Permalink

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