BY JIM BARON

PROVIDENCE — Fifteen months after Twin River missed its first loan payment to its creditors and just days after a Senate committee voted to mandate a longer greyhound racing schedule at the facility, the owners of the racetrack casino announced they will declare bankruptcy if the current General Assembly session ends without an agreement that would allow them to avoid taking that step.

“We deeply regret that, despite lengthy and extraordinary negotiations to achieve a deal that benefits all interested parties, it has not yet been possible to reach an agreement that will avert a bankruptcy,” Twin River spokeswoman Patricia Doyle, said in a written statement Monday.
“Discussions have lasted for more than one year in an attempt to address Twin River’s overleveraged balance sheet and the burden of its significant interest expense. On several occasions, we believed that we were close to a consensus on a number of viable solutions, only to see each of those proposals fall through.”
“We nonetheless remain hopeful that in the few weeks left before the current legislative session ends, all parties involved in the negotiations will redouble their efforts to reach an agreement that avoids a bankruptcy, which is the worst outcome for everyone” she said.  “To that end, Twin River’s owners, management, and advisors are committed to intensifying talks with all constituents to hopefully forge a fair and workable compromise in the short time remaining.  But absent an agreement, Twin River will have little choice but to file for bankruptcy on or soon after June 26, 2009.
“Lastly and of the highest importance,” Doyle said, “Twin River seeks to reassure its patrons that, even while in bankruptcy, the casino will be fully able to pay all amounts won by customers and that every effort will be made to ensure customers’ experience at Twin River will not be diminished.”
Carcieri administration officials and legislative leaders have indicated a willingness to discuss the casino’s financial problems with the owners, but the governor and House and Senate leaders have ruled out renegotiating the state’s 60 percent take of receipts from video lottery terminals.
Director of Administration Gary Sasse issued a statement Monday saying, “The State continues to talk with all parties in an effort to find a consensual agreement which we believe is a better option than bankruptcy. However, throughout our discussions with Twin River and their lenders, we have always been clear that the State would not support a bailout at the expense of Rhode Island taxpayers.”
“I want to reassure the patrons of Twin River that they have no reason to be concerned about payout percentages or payment of winnings at Twin River,” Sasse said. “The Rhode Island Lottery sets the payout percentages on all the slot machines, which offer some of the highest payouts in New England, and collects all cash at Twin River to ensure that payouts are made on a timely basis. The Rhode Island Lottery will continue to oversee this important function.”
House and Senate leaders did not return calls seeking comment Monday evening.