Projo Biz Blog

PROVIDENCE, R.I. -- The lenders who control the bankrupt Twin River slot parlor and the greyhound owners association that provides dogs for racing in Lincoln have reached a deal that saves more than $90 million for the gambling hall over a decade, according to federal court filings.

The agreement ends the greyhound owners' association's part in racing, but state law still requires Twin River to offer 125 days of racing annually. A Twin River spokeswoman said the slot parlor has a tentative deal with another group to provide dogs to run the required races.

UTGR Inc., the holding company that operates the slot parlor, filed for Chapter 11 bankruptcy protection June 23, citing among other issues a contract with the Rhode Island Greyhound Owners Association that UTGR said cost too much money. The 62-year history of racing in Lincoln was interrupted Aug. 8 with the suspension of greyhound racing.

Since then, the two sides have been negotiating the terms of an agreement that would significantly reduce the amount of money the dog owners would receive from Twin River.

"Rejecting the [greyhound association] Contract is perhaps the most significant operational restructuring to be achieved through these Chapter 11 Cases," states a proposed settlement agreement filed with the U.S. Bankruptcy Court in Providence shortly before midnight Thursday. "The [association] asserts that rejecting the [contract] would give rise to a rejection damages claim of at least $99,000,000 -- in addition to administrative expense claims."

The settlement agreement prevents potential claims by the association for the "significantly smaller sum" of $5 million -- comprised of a $2-million payment due when the pact is approved by a bankruptcy court judge and a $3-million payment due when certain conditions are met by the association and certain milestones.

The deal "effectively makes the [association] a partner with the debtors and all other parties in interest in their collective goal of a successful and expeditious
conclusion" of the bankruptcy case.

The proposed settlement must be approved by U.S. Bankruptcy Court Judge Arthur N. Votolato, who is expected to take up the matter Nov. 17.

In a statement e-mailed to The Journal, association spokeswoman Jennifer Bramley stated: "We have done all we could to continue greyhound racing, yet in the settlement discussion, we were unfortunately not able to reach an agreement to allow the [association's] continuation in Lincoln. Therefore, after much consideration, we have agreed on a settlement with Twin River. In light of the bankruptcy, we believe this settlement to be a fair and appropriate agreement."

While the deal will lead to the dissolution of the greyhound association and its relationship with Twin River, it does not mean an end to dog racing in Lincoln. Twin River still must host racing on at least 125 days a year as a condition of its state license to operate slot machines. Only the state government can relieve the gambling hall of fulfilling that requirement.

"We have a plan to comply with the law as it reads now," said Patti Doyle, Twin River's spokeswoman.

Twin River "has an agreement in principle" with a New Hampshire group to provide greyhounds for the races, she said, "absent a fee."

Settling the contract with the association allows the slot parlor to drop the $9-million annual fee it pays the group. The slot parlor's owners estimate they spend about $1.3 million annually to host races with a new provider, saving the venue about between $7.5 million to $8.6 million a year.

Extra: Ready a copy of the agreement.

The original version of this story was posted at 10:22 a.m. It was previously updated at 10:57 a.m.

 Tags  greyhound Twin River

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