By JIM BARON

LINCOLN — Stepping back from the precipice of bankruptcy just enough to get a little “breathing room,” Twin River has negotiated another 29-day extension in its forbearance agreement with its creditors, giving the video slot casino until Aug. 29 to restructure its enormous debt.

The extension was granted, a Twin River press release said, “in part because of improvements Twin River has made in recent months. 
“In particular, the implementation of the promotional credits program and the extension of operating hours to 24 hours per day on weekends and holidays have resulted in improved revenue.  Those initiatives, coupled with internal management efficiencies, have allowed Twin River to outperform the industry, which is experiencing one of the worst gaming revenue slumps in memory.”
While national gaming revenues have declined by approximately 8 percent so far this year, spokeswoman Patti Doyle said, Twin River has experienced an average monthly revenue growth of 12 percent net so far in 2008.  Connecticut casinos Foxwoods and Mohegan Sun have posted average monthly losses of 4.7 percent this year, she added, despite the investment of hundreds of millions of dollars in new infrastructure.
Growing revenue at Twin River, however, has not been sufficient to satisfy covenants in the company’s credit agreements, she acknowledged, and lenders are keenly focused on the profitability of the facility and its ability to support debt.
Twin River owes more than a half-billion dollars — $557 million — related to its purchase of the former Lincoln Park and the nearly quarter-billion in renovations that were completed last year.
“We are bucking the national trend,” Doyle said.  “We are growing revenues while most others are experiencing declines. 
“Our success is due in large part to the cooperative working relationship we have forged with the state, evidenced by the uptick in revenue we have realized via the implementation of promotional credits and extended hours.  However, while profitability has modestly improved in recent months, it is still not sufficient to support the level of debt currently in place.”
Doyle said Twin River has also made significant progress with its vendors who are owed money for work performed during the construction and expansion phases, several of whom have placed liens against the property.  Payment plans have been adopted and are being implemented for all contractors and vendors. 
“We now have a narrow window in which we hope to find mutually beneficial ways of enhancing our cooperative relationship with the state and avoiding a Chapter 11 filing,” Doyle said.
 Asked what those ways might be, Doyle said, “We're not ruling out or ruling in anything” while looking for “any arrangement that can make this a success or where we can find common ground.”
Twin River at one point approached state officials hoping to renegotiate the payment structure that gives the state 60 percent of the revenues from the slot machines. Twin River owners receive about 30 percent. State officials have shown no interest in changing those numbers, which are codified in state law and would require General Assembly action to amend.
Gary Sasse, director of the state Division of Revenue, which contains the division of lotteries that controls Twin River operations, said “the state's primary concern is to protect the integrity of the $250 million” it now receives from the casino. “We continue to monitor the situation and have had constructive meetings” with Twin River officials.
Gov. Donald Carcieri said Thursday after an unrelated news conference that “any time they get to work out a deal is a good thing.”
“It is the owner’s most fervent hope that we can find a common ground that protects taxpayers, satisfies lenders and allows the current owners to continue to make progress in managing the facility,” Doyle said, adding that Twin River “has outperformed the overall gaming market despite its current capital structure difficulties.  The taxpayers in Rhode Island do have a stake in this.  “We have a month to work with the state to make progress toward a comprehensive solution.”