Judge approves Twin River plan

LINCOLN – UTGR Inc., the owner of the Twin River slot parlor and dog-racing track, won court approval of the document explaining its reorganization plan after creditors withdrew their objections, Bloomberg News reported.
U.S. Bankruptcy Judge Arthur Votolato approved an amended disclosure statement last week in federal court in Providence, said Patti Doyle, a spokeswoman for UTGR. A creditors’ committee, a U.S. trustee and the construction company that renovated the racino had opposed the previous plan.
UTGR, the third-largest taxpayer in Rhode Island, filed for Chapter 11 bankruptcy protection in June, citing its state tax burden and “significant losses” from greyhound racing. Its reorganization plan is contingent on the Rhode Island General Assembly approving legislation that would allow UTGR to offer casino gambling around-the-clock, eliminate a requirement that it host dog races and hold the line on taxes.
The company said in a filing it is “cautiously optimistic that the [proposed] legislation will be enacted” soon after confirmation of the plan.
The reorganization plan would erase about $290 million of the company’s debt. First- and second-lien debt was listed at about $560 million when the company filed for Chapter 11.
The holders of about $415 million in secured debt would receive a new $300 million note and all the equity in the reorganized company, for an estimated recovery of 89 percent. The holders of $145 million in second-lien debt would be entitled to between 50 percent and 75 percent of the proceeds of any sale or recapitalization of the company within seven years. •