Mohegan Tribal Gaming Authority has said the takeover of the Mohegan Inspire integrated resort in South Korea by Bain Capital is “not in the best interests of the property.”
Bain Capital has assumed control of the resort after Mohegan failed to satisfy certain financial covenants relating to a loan held by MGE Korea, the parent company of the resort.
But while Mohegan said it did not satisfy the financial covenants, it insisted it has not missed a payment of principal or interest.
And despite attempts at amending the financial covenants which it said were “consistent with market precedents,” Bain Capital has rejected these proposals.
Instead, Mohegan said Bain Capital’s counterproposals would “result in Bain Capital receiving large payments ahead of other Inspire lenders.”
Mohegan said it wanted to keep its commitment to “many stakeholders,” including members of the Mohegan tribe and the people in Korea who are working on the property’s construction.
“Since developing and launching Inspire, we have applied our extensive operational experience in the gaming industry, including providing Inspire with essential services in the areas of compliance, finance, technology, human resources and marketing,” the tribal organisation said.
“We were committed to the long-term success of Inspire and to the continued expansion of the Incheon site.
“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 the change-of-control pursued by Bain Capital is in the best interests of the property, its team members and customers, other lenders and various key stakeholders.”
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