River Rock enjoyed its gaming monopoly in Sonoma County for approximately 11 years before the much larger Graton Resort & Casino opened next to Rohnert Park. Because Indian tribes do not fit into any of the four Chapters of the Bankruptcy Code, they are quasi-sovereign entities, bankruptcy isn’t an option and also risky for creditors of tribal casinos is the court arena, according to the analyst. Bumazhny said, “There’s only so much creditors can extract from a casino under stress,” as reported by the news agency. While the deal will only pay creditors a fraction of what they are owed by River Rock, according to gaming analyst Alex Bumazhny, a Fitch Ratings senior director, in typical restructuring deals in similar situations it’s usually “new debt to an existing creditor rather than cash,” so the cash offer could be the safest and best offer. The operator intends to finance the debt restructuring and settlement deal by borrowing as much as $50 million from an investment firm based in New York City, Benefit Street Partners.

The casino, operated by the Dry Creek Rancheria Band of Pomo Indians, is offering to pay 30 percent on the principal of what is outstanding and due in 2018, according to The Press Democrat. 30 cents on the dollar in a restructuring of its overdue debt.Īfter suffering substantial losses due to the opening of the Graton Resort & Casino in 2013, Sonoma County’s oldest tribal casino, which had enjoyed exclusivity since 2002, defaulted on interest payments on $165 million owed to creditors. On Thursday, River Rock Entertainment Authority, the operator of River Rock Casino located in Geyserville, California, announced that it would offer bondholders cash payments amounting to. Betting on sports futures, props and lay bets.

River rock vs graton casino