Will Mohegan Sun Still Make The Party If The Bay State Greenlights Gambling?
The Connecticut giant was once seen as a shoe in for a casino license if and when the Bay State legalizes expanded gambling.
But of course that was before the news broke that Mohegan Sun is struggling to avoid a default on a big chunk of its $2 billion debt load.
The tribal casino is exploring a deal with its lenders to restructure its debt, but how that will turn out is anyone’s guess.
The bond rating agencies, to say the least, have been a tad bit nervous.
The uncertainty hanging over Mohegan’s finances, however, should make backers of its plans to build a $600 million gambling palace in Palmer nervous as well.
Given the tribal casino operator may need to have hundreds of millions on hand to secure a license and satisfy demands of Massachusetts regulators, the fact it has just a little north of $90 million in cash in the bank is hardly reassuring.
I guess then it’s not all that surprising that Mohegan executives, in a recent editorial board meeting with the The Republican in Springfield, spilled the beans on their Plan B.
Earlier plans for 3,000 slot machines have been downsized to 2,500, while a 4,000 to 5,000 seat theater will now become a ballroom.
And, of course, Mohegan will be looking to bring on investors to help pay for it all.
Just five years ago Mohegan probably could have bankrolled the project on its own with a second thought - after all it then had far grander expansion plans for its campus.
Well times have certainly changed.