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Pueblo casino can't make bond payment
The pueblo north of Santa Fe had worked out a deal with bondholders in June after it couldn't make that payment on the $245 million financing for the development. The June payment also was for about $11 million.
Rivera said the resort, which opened 15 months ago, is still recovering from last fall's economic downturn.
“We are able to keep people employed and keep the doors open, but as far as the big profit expected for investors, that part won't be seen on the scale that was expected," he said.
A call and e-mail message from The Santa Fe New Mexican to the attorney representing a majority of the bondholders wasn't returned. In the past, the attorney has said the group was working with the pueblo.
Rivera said Tuesday the pueblo was in communication with bondholders and has made the resort's financial status clear.
He said gambling revenues and hotel bookings are up, and he expressed optimism those trends will continue.
Hotel bookings at the resort, which includes a $5,000-a-night suite, a spa, several restaurants and a golf course, rose by 1,700 room nights in October compared with October 2008, Rivera said.
The net win from gambling operations at the pueblo, which also runs the Cities of Gold Casino, has risen since Buffalo Thunder opened in August 2008. The net win is the amount bet on gaming machines, minus prizes and regulatory fees.
Pojoaque's net win in the previous two quarters was just over $12 million, compared with $11.7 million in the third quarter of 2008, according to the state Gaming Control Board.
Although two new casinos began operating in New Mexico in the past year, records show total casino net wins dropped by nearly $2.5 million in the first quarter of 2009 compared with the first quarter of 2008.
Casinos from Las Vegas, Nev., to Atlantic City have reporting feeling the recession.
Pojoaque has streamlined its operations. Rivera said it consolidated security and engineering operations for the pueblo and Hilton Hotels, which handles resort bookings and management.
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