Financial Times FT.com

Default threat raises stakes for tribal casinos

By Nicole Bullock in New York

Published: November 18 2009 23:30 | Last updated: November 18 2009 23:30

A looming default by the Native American tribe that owns the Foxwoods Resort Casino in Connecticut is stirring a debate over whether holders of billions of dollars of tribal debt can pursue their claims as creditors under US laws.

Federally recognised tribes operate as sovereign nations, and hundreds of them have turned to gaming for revenue, financing casino projects with debt including more than $5bn in high-yield bonds, according to Barclays Capital.

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