Twin River to ask judge for approval to end dog racing

Twin River, the Lincoln, R.I., racetrack casino that filed for bankruptcy in June, has reached an agreement with the Rhode Island Greyhound Owners Association to permanently end dog racing at the track.

The agreement is subject to the approval of U.S. Bankruptcy Court Judge Arthur Votolato, who is expected to consider it a Nov. 17 court hearing.

Under the agreement, filed Friday with the bankruptcy court in Providence, Twin River agreed to pay the owners association "an administrative expense claim" of $2 million as well as an additional $3 million if Twin River's owner, UTGR Inc., successfully emerges from bankruptcy, according to a Twin River spokeswoman.

"We're pleased that we have reached a consensual agreement," Patti Doyle, the spokeswoman, said in a statement. "This is perhaps the most significant operational restructuring to be achieved thus far through the Chapter 11 process.

"If the Settlement Agreement is approved, it completes a key step towards enhanced financial viability of the facility, helping to preserve key revenue for the State of Rhode Island."

Twin River suspended dog racing Aug. 8 after hosting the mandated 125 days of racing for the year.

Both houses of the Rhode Island legislature had passed a bill calling for 200 days of racing, but Gov. Donald Carcieri vetoed the measure July 2, saying the racing was unprofitable and that extending the season would be "inconsistent" with a plan to resolve the bankruptcy. Lawmakers have threatened to override the veto.

Twin River had been obligated to pay the owners association $9 million a year to run the dogs, and claimed it lost another $1.5 million to $1.8 million annually in operating expenses.

Before filing for bankruptcy, Twin River tried to negotiate new terms with the dog owners, offering to pay them $2 million a year for three years and to then turn the track over to them. The dog owners rejected the deal.

Twin River, whose owners include Kerzner International, Starwood Capital Group and Waterford Group LLC, of which local developer Len Wolman is chairman and chief executive officer, has continued to operate video display terminals.

b.hallenbeck@theday.com