Mohegan, the casino operator, stated yesterday (18 February) that Bain Capital’s acquisition of its South Korean Inspire integrated resort is “not in the best interests” of stakeholders.
It follows news that the private investment group took operational control of the property earlier this week, after Mohegan defaulted on a $275 million loan to its MGE Korea Limited venture.
The tribal-owned casino company recognized that it did not meet some financial covenant criteria, but emphasized that it had not missed any principle or interest payments.
It stated that Bain has refused multiple offers to alter the agreement in accordance with market precedents, instead countering with new deals in which it would earn big payments ahead of other lenders.
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Bain takes over Inspire from Mohegan
The business issued the following statement: “We have been and will continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution that allows us to be continuing partners with the people of Korea and our various stakeholders.
“We do not believe Bain Capital’s change-of-control proposal is in the best interests of the property, its team members and customers, other lenders, and different critical stakeholders.”
Mohegan noted that when building the property, it made pledges to a number of stakeholders, including the Mohegan people and the people of the Republic of Korea.
In a statement released to several media sources earlier this week, Bain stated that the strategic decision to acquire management of the property confirmed its commitment to the resort’s success.
The fund stated that there would be no impact on Inspire’s workers, guests, or day-to-day operations.
Bain commented: “Inspire’s existing management team and Bain Capital are working closely to ensure business continuity while implementing enhancements that will strengthen the resort’s market position.”
Inspire, Korea’s largest visitor-only casino, opened in March 2024 following a soft launch in the autumn of the previous year, and is scheduled to expand in phases until 2046.
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