PROVIDENCE – A bankruptcy judge this week ruled in favor of approving the reorganization plan for UTGR Inc., the company that operates the Twin River racetrack in Lincoln. The order formally confirming the plan awaits the judge’s signature.
Confirmation was made possible last month when Gov. Donald L. Carceri signed legislation required to implement the reorganization. The new law allows UTGR to halt dog racing and operate 24 hours a day, seven days a week and provides millions in state subsidies to pay for marketing.
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The plan carries out a settlement reached in January where unsecured creditors should have a 65 percent recovery rather than 5 percent. First-lien creditors owed $415 million are to take home an estimated 89 percent by receiving all the new stock plus a $300 million secured note. The plan was negotiated in part before the Chapter 11 filing last June.
Second-lien creditors, owed $145 million, are to receive half of sale proceeds between $475 million and $575 million if the facility is sold within three years. They will receive 75 percent of sale proceeds above $575 million.
The formal lists of creditors showed debt of $568 million, with $564 million secured. Revenue in 2008 was $410 million. Most revenue comes from slot machines. The current owners acquired the operation in 2005 for $470 million and spent $220 million on improvements.
Twin River competes with casinos in Connecticut. It was owned by a joint venture between Kerzner International Ltd., Starwood Capital Group LLC and Waterford Group LLC. The current owners gave up control under a provision in the pre-bankruptcy agreement.
Additional information is available at twinriver.com.
