Foxwoods tribe faces financial ruin

The chairman of the tribe that runs Foxwoods Resort Casino is warning of "dire financial times" that he says threaten the living standards of the tribe.

Michael J. Thomas, chairman of the Mashantucket Pequot Tribal Nation, sent a letter to tribal members last week noting earnings "are down considerably" in the recession with no signs of immediate improvement. He also noted the likely legalization of gambling in Massachusetts and New York will eat away at profits.

The New London Day reported Wednesday the tribe is on the brink of default and is trying to restructure $2.3 billion in debt.

Telephone messages were left Wednesday for tribal officials for comment on the report, which also cited a plan by an investment bank to continue operating the casino as usual while the debt is restructured.