Mohegan challenges Bain Capitals takeover of INSPIRE??
Mohegan Tribal Gaming Authority has criticised Bain Capital for rejecting its proposals to amend financial covenants tied to INSPIRE Entertainment Resort in South Korea. Inside Asian Gaming reported that the US tribal 바카라 operator stated that while it did not meet certain financial covenant tests, it had not missed any principal or interest payments. The loan, held by Bain Capital, remains valid until May 2027, with no principal payments due before that date.
Mohegan argued that its proposed amendments aligned with industry standards, but Bain Capital dismissed them and instead put forward counterproposals that prioritised early payments to itself over other lenders. The report said the company viewed this as an unfair demand that did not serve the interests of all stakeholders.
Bain Capital assumes control of INSPIRE
Bain Capital has taken control of INSPIRE by acquiring Mohegans shares in MGE Korea Ltd, the entity overseeing the resorts operations. This move followed Mohegans default on certain financial covenants related to a US$275 million loan, though the default was not linked to any missed payments.
Mohegan has stated that Bain Capitals decision to assume control does not benefit the resort, its employees, or other stakeholders. Despite this, Bain Capital has assured that INSPIREs existing management team will remain in place to maintain operational stability while implementing strategic improvements.
Mohegans role in INSPIREs development
Mohegan has emphasised its contributions to the development and operation of INSPIRE, highlighting its expertise in compliance, finance, technology, and marketing. The company noted that South Korean authorities had selected it for the 바카라 licence due to its family-owned approach and commitment to regulatory standards.
Although INSPIRE has faced early operational challenges since opening in November 2023, with the 바카라 itself launching in February 2024, Mohegan believes the resort is on track for long-term success. The company maintains that the necessary foundations have been set for INSPIRE to reach its full potential, but more time is required.
Last year, Mohegan reported net revenues of $63.5 million for the December quarter of INSPIRE, a slight increase from the previous quarter.
Future negotiations
The report further said Mohegan has reaffirmed its willingness to engage in further discussions with Bain Capital to reach a resolution that allows it to continue playing a role in INSPIREs future. The company remains committed to acting in good faith to find a mutually beneficial solution for all parties involved.
