Twin River facing additional liens
11:28 PM EDT on Wednesday, March 19, 2008
Subcontractors helping to renovate the Twin River slot parlor in Lincoln have moved during the last week to collect about $1 million in unpaid bills from the facility’s owner as that company reworks its finances.
UTGR Inc., which owns Twin River, missed a loan payment to its lenders earlier this month, sparking collection efforts by contractors that worked on the building’s $225-million reconstruction.
Arden Engineering, of Pawtucket, seeks $635,000 and Legere Group, of Avon, Conn., seeks about $195,000 from UTGR, according to municipal filings made in the last week. On Monday, lead contractor Dimeo Construction Co. added liens totaling more than $285,000 to the $5.7 million it already sought to collect and the contractor now claims UTGR owes it nearly $6 million.
Dimeo managed the reconstruction of the Lincoln slot parlor, overseeing the venue’s transformation into Twin River. Arden Engineering installs heating and cooling systems, while Legere produces custom woodwork for building interiors.
Overall revenue at the facility is up sharply, but the Standard & Poor’s rating organization says it is concerned about UTGR’s ability to cover its loans.
On March 4, S&P Ratings Services lowered its corporate credit rating on UTGR, to B- from B+, and placed the ratings on a “CreditWatch” list with negative implications — a strong potential for a further downgrade within six months.
The new filings will do nothing to alter that opinion, according to an S&P spokesman.
“Obviously, it’s a negative,” said Ed Sweeney, the S&P spokesman. “We’re continuing to monitor the situation.”
Twin River spokeswoman Patty Doyle said last week that the company is in the process of working out its financial problems with its lenders and contractors.
UTGR has entered into a pact with lenders, known as a forbearance agreement, giving the company until tomorrow to rework its finances, Doyle told The Journal.
The owners “are seeking some near-term funding and covenant relief on [UTGR’s] debt service, and they’re working with the lenders to develop a long-term solution to the current capital structure complaints,” she said.
UTGR’s owners, BLB Investors, bought the slot parlor, then known as Lincoln Park, for $435 million in 2005. The company quickly launched the renovation project.
The reconstruction added high-end restaurants, lounges and a 2,000-seat arena, spread out the parking area to fit 6,500 cars, rebuilt entrances and added space for more video-lottery terminals, bringing their number to 4,752 late last year. In addition to the March 13 filings by Arden and Legere, Lincoln town records indicate that a third subcontractor on the Twin River project had some difficulty getting paid by UTGR.
On Oct. 17, the firm that supplied the steel framework for the renovation — Edwards Steel Co., of Columbus, Ohio — filed notice that it sought nearly $438,000 from UTGR. That debt was satisfied with a bond payment, according to a financial release filed Feb. 18 in Lincoln Town Hall by Edwards Steel.
Yesterday, Doyle declined comment on the additional liens.
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