Dry Creek Rancheria restructures casino debt amid revenue drop

The Dry Creek Rancheria Band of Pomo Indians owns and operates the River Rock Casino in Geyserville, California. Photo from Facebook

The Dry Creek Rancheria Band of Pomo Indians in California is seeking to settle its outstanding casino debt.

The new offer pays certain bondholders about 30 percent of the amount they are owed. A $50 million loan would finance the restructuring, according to the River Rock Entertainment Authority.

The tribe defaulted on $165 million in bonds in May 2014 amid sagging revenues at the River Rock Casino. The facility has been hit hard by the Graton Resort and Casino, owned by the Federated Indians of Graton Rancheria.

According to The Santa Rosa Press-Democrat, revenues at River Rock have fallen about 40 percent since the Graton facility opened in November 2013.

"We’ve experienced no further erosion of business since the initial drop from Graton," River Rock general manager David Fendrick told the paper. "Business is holding steady."

The tribe at one point considered moving the casino to a different location but promised not to seek a new development after reaching an agreement with Sonoma County. The deal enabled the tribe to reduce its revenue sharing payments with the county.

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River Rock Casino seeks to restructure debt (The Santa Rosa Press-Democrat 8/6)

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