A Case of Abramoff-Lite: Pombo was doing favors for his Motor City Casino friends

a case of Abramoff-Lite: Rep. Richard Pombo was doing favors for his friends the Detroit casino syndicators on the same track he was advancing Northern Mariana Islands matters.

Rep. Richard Pombo was doing favors for his friends the Detroit casino syndicators; in turn they were funneling tens of thousands of dollars to Pombo’s committees, causes and friends. Although Pombo is no longer in office, these students of Abramoff and their Indian partners are still at play inside the D.C. Beltway.

While the Ilitch Family and Michael Malik, along with their lawyers and lobbyists, were contributing to Rep. Richard Pombo’s political committees and favorite causes, Pombo took advantage of his role as Chairman of the House Resources Committee and attempted in both the 108^th and 109^th Congresses to quietly slip through bills that would give favor and advantage to the Shinnecock Indian Nation, a tribe whose legal and public relations pursuits are being bankrolled by Ilitch & Malik.

Both bills had minimal exposure and then late in their respective sessions of Congress were reported in the House and placed on the Union Calendar for future vote of the whole House: H.R. 5134 (on Nov. 19, 2004); H.R. 512 (on Sept. 28, 2006). That’s as far as they got.

Both bills would have demanded the Secretary of Interior immediately review the Shinnecock Indian Nation’s petition for Federal Recognition and give a determination. If the Secretary failed to meet the Pombo deadline or didn’t rule favorably toward Pombo’s friends, both bills gave the Shinnecock the ability to appeal the in-action or negative decision in Federal court – a path that the Shinnecock have previously taken, which had outcomes favorable to the tribe.

The Shinnecock seek federal recognition as a tribe in order to build a Las-Vegas style casino and resort in the Hampton Bays area of Long Island, NY. Ilitch & Malik, under the veil of Gateway Casino Resorts (or Gateway Funding Associates), have been bankrolling legal, lobbying and public relations efforts to support the tribe in exchange for up to 30% of the future casino profits and development rights.

Ilitch & Malik want the matter expedited because each day that goes by without approvals that could lead to a groundbreaking or ribbon cutting for an anticipated Shinnecock casino in the Hampton Bays area of Long Island costs the pair of “investors” more money.

An Associated Press story written by Erica Werner in July 2005 raised questions about the timing of Ilitch/Malik hosted fundraising events to benefit Pombo in Detroit during the MLB 2005 All-Star Game and a hearing scheduled two days later in Washington D.C. that could possibly have had an impact on the Shinnecock pursuits. There are no noted press reports suggestig there was any awareness of Pombos attempts to assist his friends with H.R. 5134 or H.R. 512.

Gratuities to Pombo from the Detroit casino syndicators include:

• $16,000 from Mike & Marian Ilitch, and Michael Malik to RICH PAC (earning them #9 and #5 spots respectively on RICH PAC’s “Top Ten” individual donors list for ’04 and ’06; Jack Abramoff was #10);

• Total of more than $40,000+ for RICH PAC including contributions from various Ilitch lobbying firms (from $11,500 bundled on May 18, 2004 – $15,500 bundled on December 7, 2005);

• $26,600 to the San Joaquin County GOP Committee (Pombo’s home party organization) on October 18, 2004 from Detroit-based Barwest (Ilitch/Malik entity doing business in Barstow, Calif.);

• A $5,000 per head fundraiser at the 2005 MLB All-Star Game in Detroit (total proceeds unknown as there are no related contributions noted in Pombo’s campaign committee or RICH PAC disclosures despite aides to Pombo indicating he was the beneficiary of the event);

• Various travel arrangements;

• $50,000 to the RNC recorded the day after (7/13/05)the All-Star Game fundraiser ($25,000 each from Michae l J. Malik and Christopher Ilitch);

• $220,000 lobbying contract signed by Barbara Bonfiglio on behalf of Williams & Jensen to represent Malik’s MJM Enterprises and Development during the period Bonfiglio was also RICH PAC treasurer.

H.R. 5134 - Congressional Actions

• 9/23/2004: Referred to the House Committee on Resources.

• 9/29/2004: Ordered to be Reported (Amended) by Voice Vote.

• 11/19/2004 7:51pm: Reported (Amended) by the Committee on Resources. H. Rept. 108-788.

• 11/19/2004 7:51pm: Placed on the Union Calendar, Calendar No. 482.

H.R. 512 - Congressional Actions

• 2/2/2005: Referred to the House Committee on Resources.

• 2/10/2005: Committee Hearings Held. (1st published hearing of the session; Shinnecock only testimony outside government; 14 of 46 Members noted as present)

• 6/21/2006: Committee Consideration and Mark-up Session Held.

• 6/21/2006: Ordered to be Reported by Voice Vote.

• 9/28/2006 4:28pm: Reported by the Committee on Resources. H. Rept. 109-694.

• 9/28/2006 4:33pm: Placed on the Union Calendar, Calendar No. 419

Pombo introduced H.R. 5134 in the House the same day he introduced H.R. 5135, “To provide for a nonvoting delegate to the House of Representatives to represent the Commonwealth of the Northern Mariana Islands.” Six days later both bills were put before a vote of the Resource Committee, without either having been the subject of a previous hearing. Pombo introduced amendments to the bill he had introduced less than a week earlier in the form of a substitute bill. The committee voted and ordered the matters be reported to the full House. Pombo’s troubles in the Abramoff scandal have been tied to matters of the Northern Mariana Islands.

Although Rep. Pombo was clearly attempting to railroad approval of H.R. 5134 (and H.R. 5135); H.R. 5134 failed to win approval from the whole House in the 108^th Congress.

Pombo was not deterred. He reintroduced the bill as H.R. 512 one month into the 109^th Congress and his committee promptly “heard” the matter a week later.

The controversy surrounding the Ilitch/Malik hosted All-Star Game fundraising benefit for Pombo broke during Summer 2005 and the activities of Pombo and associates like his PAC Treasurer and former lobbyist Barbara Bonfiglio were increasingly being questioned.

Pombo severed his ties with Bonfiglio in March 2006 approximately six months after disclosure reports indicate her ties with Ilitch/Malik (for which she had been paid $220,000) were severed.

It had been 16-17 months since any formal action on H.R. 512.

Shortly after the June 2006 primary election, the Resources Committee held a routine mark-up session on what the Daily Digest indicated were “miscellaneous matters.” On June 21, 2006 the House Resources Committee reviewed more than two dozen bills including H.R. 512. The committee ordered by voice vote that reports be printed and advanced on certain of the various bills reviewed. H.R. 512 was reported to the Whole House three months later.

On September 28, at a time when the press and most others were focused on the many political campaign stories underway in the Fall elections, the report was presented and slipped into the hopper for a future vote of the whole House. All or part of the report prepared for the full House was part of the report he had ordered printed in 2004 because it appears that on the GPO printed version of Report 109-694, page six, third to the last paragraph of the section "COMPLIANCE WITH HOUSE RULE XIII" the report's author failed to replace "H.R. 5134" with "H.R. 512."

Pombo faced defeat at the polls on election day 2006 and there appears to have been no further action on H.R. 512.

Marian Ilitch and her family along with Michael J. Malik, Sr. have not been deterred by the loss of their political steward Richard Pombo. They still aggressively pursue plans to expand their Michigan casino empire through ventures with:

• the Shinnecock Indian Nation, seeking federal recognition and the opportunity to develop a casino complex in the posh Hamptons resort area of Long Island in New York;

• the Bay Mills Indian Community, using questionable land claims as leverage to get approvals to develop a third tribal casino off reservation in Port Huron, Mich.; and

• the Los Coyotes and Big Lagoon Rancheria Bands of Indians in California, two tribes Ilitch & company have adopted for the purposes of relocating planned tribal casinos across state to the Mohave Desert community of Barstow, where Ilitch owns more than 100 acres alongside I-15, half-way between the southern California basin and Las Vegas.

politics

originally posted 5.10.07

Gaming Tribe seeks to diversify while developer still pushing off-reservation casino

Michigan’s Emerging Tribal Economies:
A Presentation to the Michigan House of Representatives

Prepared By
Michigan State University College of Law
INDIGENOUS LAW & POLICY CENTER
April 13, 2007

A report prepared by the Michigan State University College of Law, Indigenous Law & Policy Center and presented to the Michigan House of Representatives in April suggests the Bay Mills Indian Community, which was the first tribe to operate a gaming facility in Michigan; and now has two moderately-sized gaming facilities, a first-class golf course, and an assortment of small businesses on its reservation; is in the process of diversifying its economy beyond gaming and hospitality.

The reports suggests that among other ventures, the tribal leaders have focused on the development of significant plastics manufacturing venture that also includes research & development, and education & job training components in partnership with the Bay Mills Community College and something called the Great Lakes Composite Institute [not registered with the Michigan Dept. Labor & Economic Growth].

The tribe and its partners have already applied for and received federal grants for the effort and plan to use their Native American owned-status as an advantage to pursue lucrative federal and other public contracts.

The report includes a specific case study on Bay Mills Indian Community which concludes:

"The Bay Mills Indian Community projects that this business venture will net tens of millions of dollars in revenue for the tribe, mitigating reliance on casino gaming. Additionally, as a licensor of the technology, the Bay Mills Indian Community will be able to assist other tribes throughout the United States in using this technology to diversify their own local economies. "

Full Report: Michigan's Emerging Tribal Economies

you may want to review these posts or click on the links below for additional information:

• Concerns raised about Malik & Bay Mills Tribe's Plastics Business long before $900k federal grant awarded
• Bay Mills plastics venture awarded $906k U.S. Commerce Dept. grant
• Bay Mills Indians have received more than $35 million in federal grants since 2000
• Bay Mills GTC ignored tribe members request for investigation into structure of plastics venture
• Bay Mills & Malik get into Plastics; Senator Stabenow announces they'll get $900,000 federal jumpstart

CongressWatch: Richard Kessler & the Ripon Groups do Congressional Travel

How Lobbyists Give Lawmakers Free Trips Despite Ban on Lobbyist-Funded Travel; Kessler a lobbyist and pres. of the Ripon Society can award lavish trips to U.S. Resorts and International spots to key (GOP) Members of Congress. Burlington Northern Santa Fe & Wheat Government Relations among 45 Kessler Clients who took advantage of loophole.



read more | digg story

Barstow casino scheme has stalled since 2005; aging Schwarzenegger agreements set to expire soon absent swift ratification

Last year, Marian Ilitch’s Detroit-based casino syndication team vowed they would win approval of their scheme for dual Indian casinos in Barstow when the California Legislature reconvened this month in Sacramento. In reality they're no closer than they were a year ago, they have no measureable progress to report and some would argue they faced a major setback when Senator Wes Chesbro, the author of legislation to approve their agreements and the only passionate supporter of their cause, was termed out of office last fall. The aging agreements they negotiated with Governor Arnold Schwarzenegger in 2005 are set to expire this legislative session if they aren't approved by both the Assembly and Senate soon.

In lieu of anything substantive to signal real progress in the California Legislature, the best the Ilitch team could do this past week was issue press releases filled with "spin" in an attempt to convince reporters and others that they are committed and making progress; and pose a veiled threat to the legislature.

As the 2007 legislative session gets underway, Ilitch and company find themselves at the same place they were a year ago – holding aging agreements signed by Schwarzenegger in 2005, absent an author or the introduction of legislation to serve as the vehicle for approval of those agreements and without crucial public commitments from any additional Sacramento lawmakers to support their scheme.

Among other triggers, the agreements Schwarzenegger has autographed are of no value unless ratified by the legislature soon. Failing to win ratification last year, the Ilitch crew has just months to make it happen.

The Ilitch organization, its two tribal partners and three Sacramento lobbying firms have failed to make any progress of their own, but have successfully blocked any other parties from making progress on alternative plans for casino development in Barstow – the halfway point between Los Angeles and Las Vegas.

Wes Chesbro, former state Senator, the author legislation to approve their Barstow scheme in the 2006 session. Chesbro’s term expired in 2006 and term limits prohibited him from seeking re-election. Ilitch and her Native American partners, the Big Lagoon Rancheria and Los Coyotes Bands of Indians, lost their only true legislative champion and were left without an author for legislation.

Including Chesbro, the Ilitch casino syndication had only won public commitments of support for their agreements from six legislators. Three of those were obligatory “co-authors” of Chesbro’s legislation because their districts, like Chesbro’s, include parties to the agreements (either the City of Barstow or Big Lagoon Rancheria). Two others (Assemblymen La Suer and Yee) indicated their support publicly after Chesbro and his original co-authors introduced the legislation.

The agreements were heard by the Senate Governmental Organization (GO) Committee last March (click to view). It was clear at the hearing Senators did not approve of the agreement but rather than take a public vote and sink the agreements at that time, the GO Committee concluded the hearing without any action.

The legislative time clock was ticking and absent any progress in the Senate, lobbyists for the Ilitch team worked with Chesbro to have legislation shepherding the agreements gutted and the agreements slipped into other legislation in the Assembly at the eleventh hour desperately hoping to find support their. The Assembly GO Committee scheduled a hearing on the agreements late in June and unlike their colleagues in the Senate, the Assembly committee members voted to reject the agreements.

ASSOCIATED PRESS
12:22 p.m. June 29, 2006

BARSTOW – An Assembly committee rejected proposed side-by-side Indian casinos by so-called reservation-shopping tribes hoping to lure Las Vegas-bound gamblers off Interstate 15 in Barstow.

Wednesday's vote by the Assembly Governmental Organizational Committee likely dooms Barstow casinos for the Los Coyotes Band of Cahuilla and Cupeno Indians of San Diego County and the Big Lagoon Rancheria of Humboldt County.

The chairman of the Assembly GO Committee, Jerome Horton, (now also termed out of office) attempted to broker a workable compromise in July/August with the various Native American concerns(San Manuel, Big Lagoon, Chemehuevi and others). Reportedly the tribes came to an understanding that would have taken Ilitch out of the driver’s seat but brought an end to inter-tribal struggles.

That didn’t settle well with Ilitch and her team pleaded with Schwarzenegger’s staff to hold off on agreeing to any new proposal. In effect, legislators and the Native American interests (including Ilitch partners) were prepared to move the proposal forward and resolve the lawsuit between the state and Big Lagoon but it was the Detroit-based Ilitch gaming interests that blocked progress.

The Ilitch team tried unsuccessfully to have the Assembly rules suspended last summer in order to pursue other options for approval in the closing weeks of the 2006 legislative session. One of Ilitch’s Indian partners resorted to theatrics and staged a hunger fast on the lawn of the state capitol. That generated media interest but failed to win any new supporters in the legislature.

RGT Online - Daily News
August 17, 2006

SACRAMENTO, California – As reported by the Desert Sun: "An American Indian band that hopes to build a casino in Barstow is attempting to get on the fast track.

"The Los Coyotes Band of Cahilla and Cupeno Indians began a fast at the state Capitol that will continue until the legislature ratifies a gaming agreement, or compact, according to Tom Shields, public relations agent for the band. In a press release, he wrote that compacts for the band and the Big Lagoon Rancheria Indians, who hope to build a dual casino in Barstow, are stalled.

"Shields said in a telephone interview that the fast began Wednesday after noon with three or four band members. Other band members and supporters will join the group in the coming days, he said. Some will fast on the Capitol lawn until the compacts get approved, but others will fast a day or so at a time, he said.

"…The state Assembly Government Organization Committee voted 7-0 to turn down the Los Coyotes/Big Lagoon compact in June…"

And now, there’s nothing other than what Ilitch’s PR team has distributed to suggest there is any thing new, any real hope in 2007. To the contrary, as long as Marian Ilitch and her "bulldogs" (as one former partner called them) stand in the way, Barstow looks like it will come up empty handed.

The terms of Senator Chesbro and Assemblyman La Suer expired last year and California's term limits laws prohibited them from running for re-election; that leaves just four of the six supporters still in office.

It should also be noted that Assemblyman Leland Yee accepted $3,300 from Marian Ilitch's partner Michael J. Malik, Sr. on June 4/5, 2006; weeks before his June 28, 2006 vote in the Assembly Governmental Organization Committee to support the Compacts. The Committee voted as a whole to reject the agreements.

2006 Legislative Proponents
1. Senator Roy Ashburn (R-18) [1]
2. Assemblyman Bill Maze (R-34) [2]
3. Senator Wesley Chesbro (D-2) [3]
4. Assemblywoman Patty Berg (D-1) [4]
** ↓support after bill introduced↓ **
5. Assemblyman Jay La Suer (R-77) [5]
6. Assemblyman Leland Yee (D-12) [6]

[1] Represents Barstow, co-author SB 168
[2] Represents Barstow, co-author SB 168
[3] Represents Humboldt County (Big Lagoon Reservation), author SB 168
[4] Represents Humboldt County (Big Lagoon Reservation), principal co-author SB 168
[5] Represents Eastern San Diego County
[6] Represents Bay Area; Speaker Pro Tem (card club supported/opposes Indian gaming)

(For more background)

Also for reference, available at Governor Schwarzenegger's web site:
* Big Lagoon Rancheria Compact
* Settlement Between the State of California & Big Lagoon Rancheria
* Los Coyotes Band of Cahuilla and Cupeno Indians Compact

You may also want to review these posts:
The Verifiable Truth: Big Lagoon Rancheria purchases 16 acres
The Verifiable Truth: Big Lagoon Rancheria trust plan under fire
The Verifiable Truth: In a move right out of the Ilitch Bay Mills playbook, CA's Big Lagoon acquires 16 acres, increases leverage
The Verifiable Truth:Ilitch & Company report spending $2.42 million lobbying for East Coast casino expansions; just $80k for Barstow plan
Capitol Notes: Trial Casino Deal Debated

Ilitch owned casino site

50-acre Barstow site is part of larger several hundred acre commercial mega resort plan Ilitch envisions for the Mohave Desert community. Ilitch controlled Barwest would have the exclusive rights, free of future competition, to develop the only two casinos and all encompassing resorts in California's 'High Desert' area from the Cajon Pass Summit north to the Nevada stateline.

BARWEST-Owned Site

Proposed Dual Indian Casinos and Resorts
Barstow, CA

*Map included in 9/06 EIS/TEIR Scoping Report

Barwest owns multiple parcels totalling 110+ acres; 48-50 acres set aside for dual casino resort developments. The Barwest owned land is adjacent to hundreds of acres managed by the Bureau of Land Managment (BLM). BLM has been approached about land swap acquisition of the adjacent lands; presumably part of the larger master resort development plans by Barwest and other commercial developers. Neither Big Lagoon or Los Coyotes Indian tribes own or control any land in Barstow today.

Google Earth Maps make it clear why Detroit Casino Syndicators won't settle for anything other than their Barstow location

A Picture (or Google Earth Map) as they say, is Worth A Thousand Words ...

Why have Detroit casino syndicators refused to bankroll casinos on the Big Lagoon and Los Coyotes Reservations or at least within their traditionally recognized ancestral homelands

Well, as they say, a picture's (or these maps are) worth a thousand words.

These 3 Google Earth maps below -- Big Lagoon Rancheria, Barstow and Los Coyotes Reservations -- are shot at the same scale, 43 miles. The yellow line on each map is representative of approximately 45 miles distance, as the crow flies. Each map notes the approximate location of nearby casinos existing or under development today.

The Detroit casino syndicators pushing to relocate the Big Lagoon and Los Coyotes casinos to Barstow, Calif. have shown no interest in financing projects on their partners' existing Reservations or within their traditionally recognized ancestral territories. It is important to realize they came to Barstow seeking to expand their Michigan gaming empire and then sought out Indian tribal partners who would relocate casinos to that community.

The Detroit casino syndicators negotiated an unprecedented 4o-mile radius exclusive non-compete zone around Barstow as part of gaming compact agreements with Governor Schwarzenegger's office. The Governor's former negotiator has indicated these shrewd gaming operators pushed for an even wider exclusivity zone during negotiations.

Big Lagoon Rancheria, Trinidad (Humboldt County) - there are four existing tribal casino operations within close proximity (less than 40 miles) of the existing Big Lagoon Rancheria 20-acre reservation. There are no major urban population centers or larger airports in close proximity to the Rancheria lands nor any high volume traffic corridors. The location is approximately five hours by car to either Sacramento or San Francisco.

Barstow (San Bernardino County) - there are no casinos today within a 50-mile radius of Barstow. The Nevada casinos are located at least 100 miles, as the crow flies, from Barstow and the San Manuel Casino in Highland, Calif., is located 75 miles by car, or slightly more than a one hour car ride away from Barstow. Barstow is located along the high traffic I-15 corridor with an estimated 60 million travelers going through the Barstow area annually enroute to Las Vegas, Utah, Arizona, New Mexico, Colorado and beyond. Although Barstow is not considered a highly urban area it is located 1 - 1.5 hours by car from the Anaheim, Riverside and San Bernardino areas and 2 - 2.5 hours by car from Las Vegas, Los Angeles or San Diego.

Los Coyotes Reservation, Warner Springs (San Diego County) - within a 40-45-mile radius of the 25,000-acre Los Coyotes Reservation there are approximately 20 casinos in operation or under development today; six of those are located within 10-20 miles of the Los Coyotes Reservation. They include some of the largest and most established Indian casinos in the U.S. San Diego County has one of the highest concentrations of casinos in the U.S. The Reservation is approximately 1.5 - 2 hours by car from Anaheim, Los Angeles, Riverside or San Diego. It is not located adjacent to a major interstate nor between any major destination points. There is a casino being developed within 8-10 miles of the Warner Springs area on the Santa Ysabel Reservation.

You may also want to review these posts:
The Verifiable Truth: News contradicts Ilitch, Los Coyotes say about prospects of northeastern San Diego County casino development
The Verifiable Truth: Tribes doing what Los Coyotes Neighbors describe as impossible

Credit rating of Ilitch held Detroit gaming company (parent of MotorCity Casino) downgraded, given negative outlook after 12+ months

excerpted from

IBL - InterNet Bankruptcy Library

http://www.bankrupt.com/about_ibl.html

T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, October 17, 2006, Vol. 10, No. 247

CCM MERGER: Moody's assigns Loss-Given-Default Ratings

---

In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the gaming, lodging and leisure sectors, the rating agency confirmed its B1 Corporate Family Rating for CCM Merger Inc.

Moody's also revised or held its probability-of-default ratings and assigned loss-given-default ratings on these debentures:

Debt Issue	Old POD Rating	New POD Rating	LGD Rating	Projected Loss-Given- Default
Five Year Senior Secured Revolver	B1	Ba3	LGD3	35%
Seven Year Senior Secured Term Loan B	B1	Ba3	LGD3	35%
8% Senior Secured notes	BR	B3	LGD5	88%

Moody's explains that current long-term credit ratings are opinions about expected credit loss which incorporate both the likelihood of default and the expected loss in the event of default. The LGD rating methodology will disaggregate these two key assessments in long-term ratings. The LGD rating methodology will also enhance the consistency in Moody's notching practices across industries and will improve the transparency and accuracy of Moody's ratings as Moody's research has shown that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments are assigned to individual rated debt issues -- loans, bonds, and preferred stock. Moody's opinion of expected loss are expressed as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to LGD6 (loss anticipated to be 90% to 100%).

CCM Merger Inc. owns and operates MotorCity Casino in Detroit,Michigan.

http://bankrupt.com/TCR_Public/061017.mbx

T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, July 4, 2006, Vol. 10, No. 157

CCM MERGER: Moody's Confirms Corporate Family Rating at B1, Outlook Negative

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Moody's Investors Service confirmed CCM Merger Inc.'s B1 corporate family rating, B1 senior secured bank loan rating and B3 senior unsecured note rating. A negative rating outlook was assigned. These rating actions conclude the review process begun on April 17, 2006.

The confirmation considers that despite a recent decline in operating results and high expected peak leverage due to upcoming expansion activity, CCM Merger continues to benefit from being one of only three casinos authorized to operate in Detroit, MI, a high density gaming market that has exhibited a good historical growth pattern.

CCM Merger is also expected to derive some positive impact from the opening of its expanded property as well as the lower tax rate relative to the opening of the expansion. Under Michigan statute, the gaming tax rate for the Detroit casinos will drop from 24% to 19% once the expanded property is opened.

Additionally, in the near-term, the Detroit market should receive some benefit from the smoking ban in Windsor that went into effect on June 1st.

The negative ratings outlook acknowledges CCM Merger's recent lower than expected operating performance which highlighted its vulnerability to aggressive promotional activities by its competitors, despite the historical strength and positive long- term outlook for the Detroit market and recent market share improvement. As a result, CCM Merger is now weakly positioned in its rating category and more vulnerable to a ratings downgrade if future operating results fall short of Moody's expectations.

Moody's most recent rating action on CCM Merger occurred on April 17, 2006 when the company's ratings were placed on review for possible downgrade in light of the company's operating performance in 2005 that was materially below Moody's expectation.

CCM Merger, Inc. owns and operates MotorCity Casino in Detroit, Michigan. The company is currently undergoing a $275 million expansion which will include additional gaming space, restaurant outlets and a new hotel.

. http://bankrupt.com/TCR_Public/060704.mbx

T R O U B L E D C O M P A N Y R E P O R T E R
Monday, June 26, 2006, Vol. 10, No. 150

CCM MERGER: High Debt Levels Prompt S&P to Downgrade Ratings

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Standard & Poor's Ratings Services lowered its ratings on Detroit-based casino owner and operator CCM Merger Inc., including its corporate credit rating to 'B' from 'B+'.

Additionally, all ratings were removed from CreditWatch where they were placed with negative implications on April 7, 2006.

The outlook is stable.

"The downgrade reflects Standard & Poor's assessment that the combination of weaker-than-expected operating performance during 2005, a highly competitive operating environment in the Detroit market, and high debt levels associated with the ongoing expansion project, have resulted in higher-than-expected near-term peak debt leverage that would no longer be consistent with the former rating," said Standard & Poor's credit analyst Michael Scerbo.

As a result of the 6% gaming tax increase effective Sept. 1, 2004, and a much more aggressive marketing environment by competitors, CCM's earnings during 2005 declined materially from the prior year despite revenues remaining relatively flat. This competitive environment continued during the first quarter of 2006 and is likely to remain the case in the near to intermediate term.

Still, over the long term, the market is expected to stabilize, which will enable CCM to reduce debt balances once the expansion of its gaming facility is complete.

However, during the expansionary period, CCM's adjusted total debt to EBITDA is expected to reach 8x in 2006, before potentially declining to levels more appropriate for the new rating in subsequent years. Operating disruptions associated with construction are expected to be limited, given the location of the expansion behind the current facility.

http://bankrupt.com/TCR_Public/060626.mbx

T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, April 19, 2006, Vol. 10, No. 92

CCM MERGER: Slow Revenue Growth Prompts Moody's Ratings Review

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Moody's Investors Service placed the ratings on CCM Merger Inc., on review for possible downgrade in light of slow growth of gaming revenues in the Detroit market, and the company's operating performance in 2005 that was materially below Moody's expectations due to unexpectedly competitive market conditions.

Additionally, weak financial performance relative to expectations is occurring at a time when the company's risk profile is elevated due to construction of its permanent gaming facility in Detroit. However, Moody's notes that CCM's cash balance at year-end 2005 is sufficient to support the company's capital spending program.

The review for possible downgrade will consider the overall outlook for revenue growth in the Detroit market, and the degree to which the recently aggressive promotional environment will impact the company's leverage and coverage measures in 2006 in comparison to prior Moody's expectations.

Moody's anticipates concluding this review after the receipt of first quarter results, further discussions with management concerning plans to manage through challenging market conditions, but in any event, within the next 60 days.

Moody's previous rating action on CCM occurred on Jul. 6, 2005 when initial ratings were assigned to the company. The ratings included:

• a B1 corporate family rating;
• a B1 rating on the $100 million senior secured revolving credit facility due 2010;
• a B1 rating on the $650 million senior secured term loan B due 2012; and
• a B3 rating on the $300 million senior unsecured notes due 2013.

CCM Merger, Inc., owns and operates MotorCity Casino in Detroit, Michigan. For the eighth month period ended Dec. 31, 2005, the company generated approximately $319.9 million in adjusted gross revenues.

http://bankrupt.com/TCR_Public/060419.mbx

T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, April 11, 2006, Vol. 10, No. 86

CCM MERGER: Poor Performance Cues S&P to Put B+ Rating on Watch

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Standard & Poor's Ratings Services placed its ratings on CCM Merger Inc., including the 'B+' corporate credit rating, on CreditWatch with negative implications. Detroit-based CCM Merger is the parent company of MotorCity Casino. The CreditWatch listing reflects a decline in MotorCity's operating performance in 2005 relative to Standard & Poor's previous expectations.

EBITDA performance in 2005 fell short of expectations partly due to a more competitive marketing environment in the Detroit market. CCM Merger does not publicly file its financial statements.

Even though revenue growth in 2006 has been positive through February, Standard & Poor's will review CCM Merger's EBITDA expectations for 2006 and in subsequent years, as well as expectations for competitive operating conditions in the Detroit gaming market, when resolving its CreditWatch listing. If the ratings review results in a downgrade, Standard & Poor's expects it would be limited to one notch.

http://bankrupt.com/TCR_Public/060411.mbx

T R O U B L E D C O M P A N Y R E P O R T E R
Friday, July 8, 2005, Vol. 9, No. 160

CCM MERGER: Moody's Rates $625 Million Secured Bank Facility at B1

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Moody's Investors Service assigned a B1 Corporate Family Rating to CCM Merger, Inc. along with a B1 rating on the company's existing $625 million 1st lien senior secured bank facility. At the same time, Moody's assigned a B3 rating to CCM's new $200 million senior unsecured notes due 2013.

Proceeds from the new $200 million senior notes will be used to refinance CCM's $200 million existing 2nd lien term loan. The 2^nd lien term loan, along with $550 million of 1st lien bank debt were used to fund the April 2005 acquisition of the 75% interest in MotorCity Casino not controlled by CCM's principal shareholder, Marian Ilitch.

The ratings consider CCM's high leverage and single asset profile. Pro forma Debt/EBITDA is about 5.2x, however that is expected to increase to almost 7.0x over the next 18-month period as a result of a $275 million expansion project that is expected to be funded with $50 million from cash flow and $225 million of additional senior secured revolver borrowings made available under a greenshoe option contained in the bank loan agreement. Leverage is not expected to decline to below 5.0x until two years following the opening of the expansion.

The two notch difference between the company's B1 senior secured bank loan rating and B3 senior unsecured note rating acknowledges the substantial amount of senior secured debt that will remain in CCM's capital structure over the next few years.

Positive ratings consideration is given to the successful operating history of the casino and the considerable size and density of the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Detroit gaming market. Detroit's win per unit statistics are among the best of all domestic gaming markets.

Additionally, the Detroit market benefits from Michigan's passageof Proposal 1 in November 2004 that requires a voter referendum for new forms of gaming in that state. Currently, MotorCity Casino is one of three commercial casinos that are permitted to operate in Detroit. The rating also takes into account that the proposed expansion will fulfill CCM's obligation under its development agreement with the City of Detroit, and as a result, will make the company eligible for a reduced wagering tax from 24% to 19%.

The stable ratings outlook is based on the expectation that CCM will reduce acquisition and expansion related debt over time to a level more consistent with its rating. Despite the expectation of continued high leverage, favorable market characteristics including strong demographics, limited competition and high barriers to entry should make it possible for the company to generate free cash flow and reduce debt once the expansion is complete. Separately, the company's bank agreement has been amended so that prior to the completion of the expansion, there is no cash flow sweep, although 75% of excess cash flow will go into an account to be used for construction purposes. Following the completion of the expansion, however, 75% of excess cash flow will be applied towards term loan debt reduction.

CCM's single asset profile, high leverage, and expected free cash flow deficits through fiscal year 2008 limit its ratings upside.

The ratings could go down if CCM fails to comply with the terms of the development agreement with the City of Detroit and/or the company takes on a material amount of additional and unanticipated debt.

These new ratings were assigned:

• Corporate Family Rating -- B1;
• $75 million senior secured revolving credit facility due 2010 -- B1;
• $550 million senior secured term loan B due 2012 -- B1;
• $200 million senior notes due 2013 -- B3; and
• Stable ratings outlook.

CCM Merger, Inc. owns and operates MotorCity Casino in Detroit, Michigan. For the twelve-month period ended April 30, 2005, the company generated about $440 million in net revenue.

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T R O U B L E D C O M P A N Y R E P O R T E R
Friday, July 1, 2005, Vol. 9, No. 154

CCM MERGER: S&P Rates Proposed $625 Million Sr. Sec. Loan at B+

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Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Detroit, Michigan-based CCM Merger Inc., the parent company of MotorCity Casino.

At the same time, Standard & Poor's assigned its 'B+' rating and a recovery rating of '3' to the company's proposed $625 million senior secured credit facility, reflecting Standard & Poor's expectation that lenders would realize a meaningful recovery of principal (50%-80%) in the event of a payment default.

In addition, Standard & Poor's assigned its 'B-' rating to the company's proposed $200 million in senior unsecured notes due 2013, reflecting the large amount of priority debt in the capital structure.

Proceeds from the proposed debt issuances will refinance existing indebtedness used to fund the acquisition of MotorCity. The outlook is stable.

"The ratings reflect the expectation for high debt levels over the next few years to fund the acquisition and the future expansion of MotorCity, as well as the company's reliance on a single-property for cash flow generation and construction risks associated with a proposed expansion," said Standard & Poor's credit analyst Emile Courtney. "These factors are partially mitigated by some barriers to new competition in Michigan, as commercial gaming cannot be expanded without a voter referendum, solid customer demographics, and expectations for stable cash flow generation," Mr. Courtney added.

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as of December 28, 2006

CCM Merger Issue Ratings	Moody's*	Standard & Poor's**
Corporate Credit Rating	B1	B/stable/--
Senior Secured Bank Credit Facility ($650 million)	Ba3	B/--/--
Senior unsecured ($300 million)	B3	CCC+

* The ratings from Aa to Ca by Moody's may be modified by the addition of a 1, 2 or 3 to show relative standing within the category.

**The ratings from AA to CC by Standard & Poor's, may be modified by the addition of a plus or minus sign to show relative standing within the category.

http://www2.standardandpoors.com/portal/site/sp/en/us/page.ratingssearch/ratings_search/2,1,1,5,0,0,0,0,0,0,0,0,0,0,0,0.html?cspage=or&SearchValue=390542

http://www.moodys.com/moodys/cust/qckSearch/qckSearch_search_result.asp?n_id=808508218&fr_ref=C&PB2_nam=CCM+Merger%2C+Inc%2E&searchQuery=ccm+merger&search=1&searchIdent=qcksearch&searchresult=named&portid=&frameOfReference=corporate

Equivalent Credit Ratings
Credit Risk	Moody's*	Standard & Poor's*
Investment Grade
Highest quality	Aaa	AAA
High quality (very strong)	Aa	AA
Upper medium grade (strong)	A	A
Medium grade	Baa	BBB
Not Investment Grade
Lower medium grade (somewhat speculative)	Ba	BB
Low grade (speculative)	B	B
Poor quality (may default)	Caa	CCC
Most speculative	Ca	CC
No interest being paid or bankruptcy petition filed	C	C
In default	C	D

Source: The Bond Market Association

* The ratings from Aa to Ca by Moody's may be modified by the addition of a 1, 2 or 3 to show relative standing within the category.

**The ratings from AA to CC by Standard & Poor's, may be modified by the addition of a plus or minus sign to show relative standing within the category.