Genting Malaysia plans recovery of $428M Massachusetts investment

Genting Malaysia is weighing its options for getting back MYR1.77 billion ($427.5 million) worth from promissory notes issued to a Massachusetts tribe for the development of an integrated resort in the state.

In a filing, Genting Malaysia said, “The Group is currently deliberating the appropriate course of action by working closely with the Tribe to review all options available for the Group’s investment in the promissory notes as well as its recoverability.”

Last September 7, the U.S. federal government, through the Department of Interior (DoI), had issued a decision stating that the Mashpee Wampanoag Tribe would not be granted the disputed land in trust for developing the First Light Resort & Casino in Taunton, South of Boston. Genting Malaysia had issued about $274 million in promissory notes with interest rates of 12% and 18% per year.

Construction of the resort was hampered by local residents who said the 2015 awarding of the 300 acres for putting up a casino was a misinterpretation of the Indian Reorganization Act, which had been clarified by a 2009 Supreme Court ruling. In Carcieri vs. Salazar, the court had ruled that the federal government can only have a land in trust for tribes recognized as of June 1, 1934, when the Indian Law was enacted. The Mashpee Wampanoag Tribe was only federally recognized in 2007.