What can we say? After centuries of white men screwing over Indian tribes, this kind of karmic correction was long overdue. A Chippewa Indian band in northern Wisconsin has received district court permission to walk away from a $50M debt owed to a private equity firm. The tribe had used a $50M bond from Saybrook Capital LLC to finance construction of a casino and a failed out-of-state gaming project, but the band decided it didn’t have to make good on the $782K monthly repayments because the deal had never been approved by the National Indian Gaming Commission.
While we’re in no way condoning the Chippewas going back on their word, the private equity boys should have done their homework in order to fully understand the legal responsibilities of the deal they were brokering. Or maybe they thought they were still living in the days when a white man could buy Manhattan from the Indians for $24. Guess not. But you can buy a valuable life lesson for, I don’t know, $50M. Read more.