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Mohegan Sun Tribal Owners Get Pushback on 14% Casino Rescue Loan

  • Company is seeking a new $100 million loan to tide it over
  • First-lien lenders work with Rothschild as financial adviser

Mohegan Gaming & Entertainment is trying to hammer out an agreement to borrow another $100 million to keep its shuttered casinos afloat after missing a self-imposed deadline last week to get a loan.

Some investors pushed back on the company’s efforts to borrow earlier this month, citing concerns including the casino operator’s ability to raise all the money it needs to repay maturing debt next year and to fund ambitious planned expansion. A group of Mohegan lenders tapped investment bankers at Rothschild & Co. as financial advisers while negotiations continue, according to people with knowledge of the matter.