Twin River step closer to bankruptcy

LINCOLN, R.I. (WPRI) - Twin River is one step closer to filing for bankruptcy.

On Monday, the gaming facility announced that it is committed to filing for bankruptcy if a restructuring agreement with lenders and the state cannot be reached by the end of June.

A spokeswoman from Twin River which is owned and operated by BLB Investors, LLC issued the following statement:

“We deeply regret that, despite lengthy and extraordinary negotiations to achieve a deal that benefits all interested parties, it has not yet been possible to reach an agreement that will avert a bankruptcy,” said Patricia Doyle, spokeswoman for Twin River.

“Discussions have lasted for more than one year in an attempt to address Twin River’s over levered balance sheet and the burden of its significant interest expense. On several occasions, we believed that we were close to a consensus on a number of viable solutions, only to see each of those proposals fall through.”

“We nonetheless remain hopeful that in the few weeks left before the current legislative session ends, all parties involved in the negotiations will redouble their efforts to reach an agreement that avoids a bankruptcy, which is the worst outcome for everyone” she said. “To that end, Twin River’s owners, management, and advisors are committed to intensifying talks with all constituents to hopefully forge a fair and workable compromise in the short time remaining. But absent an agreement, Twin River will have little choice but to file for bankruptcy on or soon after June 26, 2009.”

“Lastly and of the highest importance, Twin River seeks to reassure its patrons that, even while in bankruptcy, the casino will be fully able to pay all amounts won by customers and that every effort will be made to ensure customers’ experience at Twin River will not be diminished.”

In response, Gary Sasse, Director of the Departments of Administration and Revenue issued the following statement:

"The State continues to talk with all parties in an effort to find a consensual agreement which we believe is a better option than bankruptcy," said Sasse. "However throughout our discussions with Twin River and their lenders, we have always been clear that the State would not support a bailout at the expense of Rhode Island taxpayers."

"I want to reassure the patrons of Twin River that they have no reason to be concerned about payout percentages or payment of winnings at Twin River. The Rhode Island Lottery sets the payout percentages on all the slot machines, which offer some of the highest payouts in New England, and collects all cash at Twin River to ensure that payouts are made on a timely basis. The Rhode Island Lottery will continue to oversee this important function."