JACKSON – Although the Mississippi Band of Choctaw Indians said in May that profits from its casino had paid off its $18 million construction costs, financial documents show that the tribe used a $10 million line of credit to help pay that cost.
Tribal spokeswoman Wilma Simpson tells The Clarion-Ledger that the tribe’s previous statement about “paid in full” referred “only to construction costs.”
Moody’s Investors Service cited that $10 million loan when it described the Choctaw Resort Development Enterprise’s liquidity as weak and downgraded the tribe’s bonds to junk bond status. It also cited $70.8 million due in November.
Moody’s said the resort had $27.2 million in unrestricted cash, including $15 million in cage cash at the end of March, but that wouldn’t cover “$80.8 million of maturing debt.”
The Associated Press