River Rock was the first tribal casino in Sonoma County when it opened in 2002. He said tribes are quasi-sovereign entities that can’t be put through bankruptcy, and courts are also a risky arena for creditors of tribal casinos. “Thirty cents on the dollar is still quite a bit of debt.” “There’s only so much creditors can extract from a casino under stress,” said Alex Bumazhny, a Fitch Ratings senior director. River Rock intends to borrow up to $50 million from Benefit Street Partners, a New York City-based investment firm, to finance the restructuring and settlement deal.Ī gaming analyst on Friday indicated bondholders may have few options other than to accept the offer. In a proposal announced Thursday, River Rock Entertainment Authority, the operator of Sonoma County’s oldest tribal casino, said it would offer cash payments amounting to 30 percent of the principal amount of outstanding senior notes that are due in 2018.

The offer comes more than two years after the Geyserville-area casino operated by the Dry Creek Rancheria Band of Pomo Indians defaulted on interest payments on $165 million owed to bond holders. River Rock Casino, which took a financial blow after the bigger, glitzier Graton Resort and Casino opened nearly three years ago, is offering to restructure its overdue debt, but in a deal that would pay bondholders a fraction of what they are owed.

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