Native American tribe default brings creditor rights concern, reports FT

Thursday, November 19, 2009

The Financial Times reported today that creditors may not be able to exercise their rights in a default scenario by Mashantucket Pequot Tribal Nation.

TAGS: Default

Comment by: Anonymous. Posted 14 years ago [2009-11-20 15:15:18]

Yes, certainly some creditors did. But how did they get comfortable? Many of them made an analogy to GO municipal risk. A saying in Muni Land is "you can't seize the courthouse" upon a municipality's bankruptcy. But creditors believe (hope?) that municipal borrowers will be cowed by the prospect of "never borrowing again" if they don't work with the creditors.

Comment by: Anonymous. Posted 14 years ago [2009-11-19 19:32:48]

Someone please tell me that creditors thought of this scenario before extending these facilities!

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