Chukchansi Economic Development Authority misses Nov. 15 note payments

By Caroline Salls

Pittsburgh, Nov. 16 - The Chukchansi Economic Development Authority did not make the Nov. 15 interest payments on its 8% senior notes due 2013 and floating-rate senior notes due 2012, according to a news release.

"Chukchansi Gold is a premium resort destination that continues to generate positive cash flow," the authority said in the release.

"However, we have not been immune from the global economic downturn and significant central California economic forces (including approximately 15% unemployment and home foreclosures that are two to three times greater than the national average), which have impacted our operations, just as they have affected many operating in the gaming industry as well as many other businesses in the region."

"We are actively seeking to negotiate a timely restructuring of our debt, which, if successful, would provide us with increased financial flexibility and enable us to emerge a stronger business over the long term," the release continued.

"In addition, a sensible restructuring would provide us with the resources necessary to continue to re-invest in our property, take advantage of strategic opportunities as they arise and maintain our role as a responsible citizen of our community."

Chukchansi is a Coarsegold, Calif.-based operator of the Chukchansi Gold Resort & Casino.

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