River Rock Casino, in default on $200 million in debt, is asking creditors to extend its loan for another seven years.
Investors would receive lower interest payments, which could make it harder to win their approval.
It's unclear what would happen to the tribal casino if it can't restructure its debt. River Rock remains open while it tries to refinance.
The Alexander Valley casino is owned by the Dry Creek Pomo Indian tribe. It is located on the tribe's 93-acre reservation off Highway 128 east of Geyserville.
The tribe's gaming business is in default on $200 million in debt, which came due Nov. 1. River Rock sold the notes in 2003, and they pay 9.75 percent interest.
River Rock used the money to repay earlier debts, settle litigation, acquire adjacent land and build a multistory parking garage, according to securities filings.
The casino has about 600 employees, more than 1,200 slot machines and about 20 gaming tables. It generated more than $124 million in sales last year.
Last week, the casino said the majority of its investors agreed not to pursue foreclosure or other legal remedies while River Rock restructures.
Most of the casino notes are held by institutional investors, including high-yield bond funds, union pension plans, insurance companies, other retirement plans and nonprofits.
In a new filing with federal regulators, River Rock said it will ask investors to exchange their old notes for $200 million in new debt paying 9 percent interest.
The fresh notes would mature in 2018. The deal includes an incentive payment tied to the amount of cash on its balance sheet.
The casino had about $38 million in cash at the end of September, according to its most recent filing.
River Rock officials didn't return calls seeking comment Wednesday.
Two credit rating agencies have downgraded its debt since last week's default, saying casino creditors stand to get less from the deal.
"The current debt holders could incur a possible material impairment in the debt restructuring process," said Moody's Investors Service.
Standard & Poor's also lowered River Rock's rating.
But both agencies said they expect casino revenues to remain stable over the next year or two.
Investors have until the end of December to decide on the offer.
It could be difficult for creditors to foreclose on the property, since River Rock is on tribal land held in trust by the federal government. The tribe has waived some of its immunity from legal action, but the waiver applies only to gaming assets.
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