LINCOLN — With time running out on the legislative session and a bill in the works to thwart their plans to end live dog-racing, the owners of the Twin River track and slot parlor say they will file for bankruptcy by the end of the month if they cannot restructure their debt — and their contract with the state — before the General Assembly adjourns for the year.

The owners, in a statement issued Monday afternoon, said Twin River is “committed to filing for protection under Chapter 11 of the U.S. Bankruptcy Code if a consensual restructuring agreement with its lenders and the State of Rhode Island cannot be reached by the close of the current legislative session at the end of June.”

Spokeswoman Patti Doyle said: “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 … 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.”

The statement drew this response from Gary Sasse who, in his capacity as director of the Department of Revenue, oversees the Lottery: “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.”

Both sides then went on to assure the patrons that a bankruptcy filing would not, in any way, affect the payout percentages or payment of winnings from the 4,751 video-slots.

Twin River has been struggling to keep its lenders and creditors at bay since defaulting on its half-billion dollars in loans in March 2008.

Last week, the owners’ group known as BLB Investors announced potential progress in their efforts to restructure their debt under more affordable terms, while averting a state takeover and a once-sought reduction in the state’s share of the video-slot revenue.

Having already announced plans to suspend greyhound racing in August after running the minimum 125 days, the owners disclosed their offer to buy out their $9-million-a-year contract with the dog owners, to get out from under what is to them a losing end of their business. But the Rhode Island Greyhound Owners Association rejected the offer, and a Senate committee approved a bill requiring a full season of dog racing.

There are only a handful of other places the owners can turn to plug the rest of their $30-million revenue hole without reducing the state’s share of the video-slot revenue, including the shares paid to GTECH and the other machine providers and to the Town of Lincoln.

“Absent an agreement,” Doyle said, “Twin River will have little choice but to file for bankruptcy on or soon after June 26, 2009.”

kgregg@projo.com