Less than a year after it opened, an integrated resort (IR) in South Korea has a new owner. Earlier this week, principal lender Bain Capital took over Inspire South Korea from developer-operator Mohegan Gaming & Entertainment (MGE).
Invoking an acceleration provision in its contract, Bain demanded that MGE immediately repay $275 million in loans or surrender control of the IR on Yeongjong Island.
In a Feb. 18 news release, MGE acknowledged that it “did not satisfy certain financial covenant tests,” but added that it has not missed any payments of principal or interest. MGE also cited “near-term hurdles that are common in new resorts of this scale.” The $1.6 billion resort, which opened last February, was South Korea’s first luxury IR, with a matchless location adjacent to Incheon International Airport.
MGE says it will “continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution. We do not believe the change-of-control is in the best interests of the property, its team members and customers, other lenders and various key stakeholders.”
Meanwhile, it’s “business as usual” at Inspire, says President Chen Si, with a “bullish” new operator at the helm. The Korea Times reports that the IR is “pushing for growth, despite (the) ownership change.”
