The Indian tribe that owns Red Hawk Casino made a deal to pay off a big debt to its management company and take over operations of the Shingle Springs property.
The deal calls for the Shingle Springs Band of Miwok Indians to make a $57.1 million lump-sum payment to Lakes Entertainment Inc. of Minneapolis. That represents a discount of about $10 million, according to Securities and Exchange Commission filings.
As part of the deal, Lakes Entertainment will step aside once the debt is paid and the tribe will run the casino itself.
The deal with Lakes brings the tribe a step closer to a major restructuring, engineered by California officials, that's designed to prop up the ailing casino.
The Legislature approved a new gaming compact that significantly reduces the amount of money the tribe must pay the state, but it doesn't take effect until the Miwok band restructures other debts.
The tribe still has to restructure its massive, $400 million-plus bond debt in order to put the state plan into effect.
"The tribe is fully confident in its ability to operate and manage Red Hawk Casino," said tribal Chairman Nick Fonseca in a press release.