Talks between the State of Rhode Island and Twin River concerning a financial rescue have broken down. This is a serious situation, since Twin River generates nearly $250 million annually in revenue for the state.  It's also a little scary.  You know you're in rough shape when Rhode Island needs to come to your financial rescue.  It's a bit like the blind leading the blind.

     At any rate, Twin River owes $565 million in debt and has a bond rating of "D", so their chances of refinancing with favorable terms are somewhere between slim and none.  Even though the state depends on Twin River, I would be reluctant to bail them out.  After all, if you're going to bail out this company, then who is next?  How do you decide who fails and who succeeds?  The state shouldn't be allowed to make those decisions.

     Besides the state, there might be other options.  what about the Narragansett Indian Tribe?  They want a casino, and Twin River is essentially a casino.  If they could find a partner and get financing, they could finally get their "casino", and the state would preserve its revenue stream. That's just an idea, and here's another: The owners of Twin River are going to propose adding table games to bring in more gamblers.  I haven't seen any mention of it, but seeing that both the state and Twin River need the revenue, I could see it being pitched as a type of "bailout" to protect the states stake in the gambling revenue.  Keep your eyes open.