Projo Biz Blog

Businesses owed money by the owners of the Twin River slot parlor will gather in Providence on Tuesday to meet with the U.S. trustee administering the high-profile bankruptcy.

Overwhelmed by more than a half-billion dollars in debt, Twin River's owners agreed to turn over the keys to the 62-year-old track and slot parlor to their lenders, led Merrill Lynch Capital, and let them bring in a new operator within 120 days under an agreement filed in U.S. Bankruptcy Court on Tuesday.

"As successful as [Twin River's] operations have been, their revenues cannot support the substantial demands imposed by the state tax rate and the debtors' debt services obligations" on $589 million in loans, the filing states.

The U.S. trustee acts as an administrator in bankruptcy cases, ensuring that the people, businesses and organizations potentially affected by the bankruptcy have access to the information they need to seek payment for products or services from financially distressed companies.

The U.S. trustee is charged with organizing a committee of unsecured creditors such as tradesmen and suppliers. Banks and other lending institutions typically have the right to claim specific assets in the event of a bankruptcy.

Tuesday's meeting begins at 11 a.m. in Room 910 in the Office of the U.S. Trustee, 10 Dorrance St., Providence.

 Tags  bankruptcy Lincoln RI Providence RI Twin River

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