Resorts World Catskills
Genting Malaysia is preparing to inject another US$20 million into Empire Resorts Inc that will likely see it claim a majority share in the New York-based casino firm.
The company announced Friday that its wholly-owned subsidiary, Genting ER II LLC, has entered into a subscription agreement to subscribe for up to US$20 million in “Series L Preferred Stock” in Empire in order to boost the latter’s equity due to challenges arising from the COVID-19 pandemic.
Empire operates Resorts World Catskills and harness horseracing facility Monticello Raceway in the state of New York.
Genting Malaysia currently holds a 49% stake in Empire Resorts, with the remaining 51% held by Kien Huat Realty III Limited – the private investment vehicle of Genting Group Chairman and CEO Lim Kok Thay. Should both Genting Malaysia and Kien Huat both convert all of their outstanding series shares – including those comprising this latest US$20 million investment – into common stock, Genting Malaysia would hold a 58% stake in Empire by 2030, when the last of those conversions is schedule to take place.
This is not the first time the Malaysian casino operator has injected extra funding into the embattled US firm, which it acquired in partnership with Kien Huat via a takeover deal in 2019. Genting Malaysia had previously injected US$40 million in funding in March 2020, then another US$150 million last September.
On Friday, the company said further funds were needed to ensure Empire fulfilled its debt obligations after being forced to close for six months from March to September 2020 due to COVID-19.
“The Proposed Equity Injection will enable Empire to have funds to fulfill its financing conditions to complete the short-term refinancing plan,” Genting Malaysia said. “In addition, Empire will be able to prove out its business plan and continue with its long-term refinancing plans.
“The Proposed Equity Injection will also allow Genting Malaysia to continue securing its position to participate in the prospects and future growth of Empire, particularly in relation to the Orange County Opportunity and the potential expansion of sports betting opportunities within the state of New York.”
A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.
As sure as death and taxes, the IAG team begins the process of selecting our Asian Gaming Power 50 list…
Long established as the definitive list of the most influential figures and personalities in the regional industry, IAG’s Asian Gaming…
IAG introduces the eight members of the judging panel who have determined this year’s Asian Gaming Power 50 list.
The countdown begins! IAG’s full list of the men and women who made our industry tick in 2022.
Australian racing and wagering firm Tabcorp has revealed it will look to raise US$289 million via the issuance of long-term debt to investors in the US private placement market. The debt will be accrued via two US dollar denominated tranches…
US casino giant Wynn Resorts Limited announced early Friday (Asia time) that it has completed the sale of the land and real estate assets of its Massachusetts integrated resort, Encore Boston Harbor. The sale, to Realty Income Corporation, will net…
Episode 9 of “On the Run” by Andrew W Scott, the IAG CEO Vlog. Andrew talks about his travels around the Asia Pacific region, and provides some commentary on stories published by IAG in the past week: Macau: 6 new…
The third and final round of matches in the group stage of the 2022 World Cup are underway in Qatar and IAG has you covered with the full schedule of matches. Friday 2 December, 11pm (Asia time): South Korea v Portugal…
© 2005-2022
Inside Asian Gaming.
All rights reserved.
© 2005-2022
Inside Asian Gaming.
All rights reserved.