A federal bankruptcy judge in Philadelphia approved the liquidation plan of the partnership behind the failed Foxwoods Philadelphia casino plan.
The Foxwoods group, formally known and Philadelphia Entertainment & Development Partners L.P., was stripped of the second Philadelphia casino license late in 2010, after missing deadlines for providing financing and construction plans to the Pennsylvania Gaming Control Board.
The failure of the project—which failed to secure a last-minute takeover by Caesars Entertainment—left the partners with unsecured debts totaling nearly $80 million. While that is what led to the approval of the liquidation plan, the matter is not over yet—the partners have filed a lawsuit seeking return of the $50 million license fee it paid in 2007.
The state announced it will hire outside counsel to defend the lawsuit, after both the Pennsylvania Office of Attorney General and the state’s Office of General Counsel declined to defend against the suit, according to bankruptcy documents.
According to a report in the Philadelphia Inquirer, the state general counsel’s office said it “does not have the in-house knowledge, experience and resources necessary” to effectively defend the case, and will appoint a special counsel with gaming expertise.
