Business Deals | Litigation

Nooksack Tribe can't pay back $15M loan for struggling casino

Monday, April 20, 2015

The Nooksack River Casino in Deming, Washington. Photo from IO Creative

The Nooksack Tribe of Washington can't pay back a $15 million loan because its casino is operating at a loss, The Bellingham Herald reports.

The tribe claimed sovereign immunity when Outsource Services Management, a loan servicing company, tried to collect the debt. Last August, the Washington Supreme Court ruled that the loan agreement waived the tribe's immunity and authorized state court jurisdiction.

Since then, the tribe has argued that it is not required to pay the loan because the Nooksack River Casino has not generated enough profits. In addition to operating at a loss, the facility is $2 million in the hole, the paper reported.

Whatcom County Superior Court Judge Deborra Garrett heard arguments in the matter on Friday. A decision could come in May or June, the paper said.

In addition to the Nooksack River Casino, the tribe operates the Nooksack Northwood Casino.

Get the Story:
Lawyer: Nooksack River Casino unable to pay debt, could close (The Bellingham Herald 4/18)

Washington Supreme Court Decision:
Outsource Services Management v. Nooksack Business Corporation (August 21, 2014)