Sault Tribe of Chippewa Have Until February 1, 2009 To File Plan For Exit From Bankruptcy For Greektown Casino

Greektown Casino, which has been operating under bankruptcy protection since May 29, 2008, has until February 1, 2009 to file a plan for an exit from bankruptcy.

The Sault Ste. Marie Tribe of Chippewa, the tribal owners of the casino, are currently analyzing the various options available to the Tribe. One option is the sale of the casino, which would end the outflow of money from the Tribe to the casino, estimated at $47 million in 2008 alone. These cash infusions required the Tribe to lay off tribal employees, and suspend certain tribal benefits. However, the sale option would prevent the Tribe from enjoying any of the potential upside when (or if) the Detroit casino market recovers. In addition, there are few potential buyers for the casino, given the current status of the credit markets, and the global economy.

A second option is the continued ownership of the casino, which will require restructuring of the debt of the casino, and would likely involve more cash contributions from the Tribe.

Stay tuned. . .

On Again, Off Again Casino Legislation Is Back On Again

The on again, off again legislation to authorize the opening of two new casinos, in Port Huron and Romulus, Michigan, in accordance with a compact entered into by former Michigan Governor John Engler, is apparently back on again.

The bill still awaits action on the entire House floor.

Chairman of Greektown Casino Board Resigns; Faces Trial For Misdemeanor Assault

The Free Press reports today that Fred Paquin, chair of the Greektown Casino Board of Directors has resigned under pressure from the Michigan Gaming Control Board, and faces a trial for misdemeanor assault in February in Chippewa County.

The assault charge arises out of a dispute he had with a 34 year old woman who was a secretary in the Tribe's Prosecutor's Office. Paquin, 50, also the Chief of Police for the Tribe (and now suspended with pay), alleges that he was having an affair with the married woman, and they had a dispute over money she wanted. The woman denies a relationship, and claims Paquin assaulted her, including shoving his hand down her shirt.

Yet another interesting twist in the management of Greektown Casino. Of course, that is a post for another day.

Port Huron and Romulus Indian Casino Legislation Is Off Again

The on-again, off-again legislation to give federal approval to a land swap negotiated in 2002 by then-Governor John Engler is apparently off again. Detroit Rep. Carolyn Cheeks Kilpatrick, mother of Detroit Mayor Kwame Kilpatrick, put the kibosh on the legislation.

Expect this legislation to be revisited, as two sponsors, Rep. John Dingell, and Rep. Bart Stupak, support the legislation. Rep. Dingell's support is critical, as he is the senior member of the Michigan congressional delegation, and has significant allies in Congress.

Two Bills In Congress Would Authorize New Indian Casinos In Port Huron and Romulus

The Natural Resources Committee will be holding hearings next week on two separate pieces of legislation that would give federal approval to the agreement signed by then-outgoing Governor John Engler and two Michigan Indian tribes in 2002. The legislation would authorize the opening of Indian-run casinos in Port Huron and Romulus.

The Port Huron casino would be owned by the Bay Mills Indian Community, which currently operates a casino in the Upper Peninsula of Michigan.

The Romulus casino would be owned by the Sault Ste. Marie Tribe of Chippewa, which currently operates the Greektown Casino in Detroit, as well as the Kewadin casinos in Michigan's Upper Peninsula.