RI Debates More Dog Racing As Track Seeks An End

A last-minute fight over the future of greyhound racing at the Twin River racetrack and slot parlor could thwart a bankruptcy plan meant to protect the state's third-largest source of revenue amid a severe budget crisis.
House lawmakers planned to vote Friday on a bill forcing the bankrupt Twin River slot parlor in Lincoln to host 200 days of greyhound racing instead of the current 125 days, even as the gambling parlor and Gov. Don Carcieri want to scrap the unprofitable dog racing.
If a bankruptcy settlement cannot be reached, it could endanger $238 million in income the cash-strapped state expects to get from slot machines at Lincoln Park.
UTGR Inc., the owner of Twin River, sought Chapter 11 bankruptcy protection this week as it struggles to repay more than a half-billion dollars in debt. As part of a deal with Carcieri's administration, it wants legislative permission to end greyhound racing, which the company says loses $10.5 million annually.
While betters wagered about $150 million on greyhound races in 1990, that sum has dropped to around $13 million, according to state records.
Sen. Frank Ciccone III, D-Providence, said his bill would protect the jobs of more than 200 greyhound kennel owners and other workers in a state already facing a 12.1 percent unemployment rate. As a pressure tactic, Senate lawmakers have refused to take action on a budget proposal approved by the House until they get action on the dog-racing proposal, among others.
"Twin River with their investors, I have not seen any one of their investors lose any money," Ciccone said. "I don't see any foreclosure signs on their houses, and I don't see them wanting cash."
In fact, UTGR would lose its $300 million ownership stake in the gambling hall as part of the bankruptcy deal. Other lenders would be unable to immediately collect about $290 million in other debts.
Carcieri opposes any increase in greyhound racing since it would upset a bankruptcy settlement designed to protect the state's share of revenue from the video slot machines at Twin River.
Gary Sasse, Carcieri's director of administration, warned the legislation could result in what state leaders hope will be a structured bankruptcy case becoming a "protracted, free-all proceeding" and millions of dollars in lost revenue for the state.

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Two-thirds got payment offer

MORE than two-thirds of the investors in Singapore who complained of mis-selling after losing money from the collapse of US investment bank Lehman Brothers, have been offered compensation.Out of 5,350 cases dealt with by financial institutions that sold the Lehman-linked structured products, a quarter saw investors receiving full compensation, said Senior Minister Goh Chok Tong yesterday.
The latest updates came from the Monetary Authority of Singapore (MAS).
Mr Goh, who is also MAS chairman, was speaking at The Association of Banks of Singapore's (ABS) annual dinner.
He said the financial institutions that distributed the failed structured products have generally reviewed investor complaints in accordance with MAS recommendations that they should not take an overly legalistic approach.
Three banks and one finance company told MAS that as at last month, settlements worth $105 million - on a no-admission-of-liability basis - had been offered to more than 3,600 investors of Lehman-linked notes.
Of the 5,350 cases dealt with and decided on by the financial institutions, 67 per cent had seen settlements offered, while investors in 25 per cent of the cases decided were fully compensated.
Ten financial institutions sold over $660 million worth of Lehman-linked investments to more than 10,000 investors, who bought Lehman Minibonds, DBS High Notes 5 and Merrill Lynch Jubilee Series 3 LinkEarner Notes.
Mr Goh said MAS had recently consulted the public on proposed regulatory enhancements to cover the sale and marketing of structured products to retail investors.
'Broadly, the findings from MAS' policy review and investigations show that financial institutions will need fundamental changes in both business models and mindsets to win back the trust and confidence of consumers. This is true not only in Singapore, but across the globe.'


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