UNCASVILLE, CT – Mohegan Tribal Gaming Authority confirmed that it received notices that Bain Capital, the principal lender to MGE Korea Limited, the parent company of the Mohegan Inspire Entertainment Resort in South Korea (Inspire), has accelerated the MGE Korea Limited mezzanine loan and taken control of Inspire.
In a statement, Mohegan writes:
Inspire is a groundbreaking integrated destination that is quickly establishing itself as a premier resort in Asia after its opening in February 2024. Despite near-term hurdles that are common in new resorts of this scale, Mohegan believes we put the essential components in place for long-term success and the property needs more time to achieve its full potential.
While Mohegan did not satisfy certain financial covenant tests, we have not missed a payment of principal or interest. Specifically, the loan held by Bain Capital does not mature until May 2027, with no principal payments due before the maturity date. We made several good faith proposals for amending the financial covenants that are consistent with market precedents. However, Bain Capital has dismissed those proposals and provided counterproposals that would result in Bain Capital receiving large payments ahead of other Inspire lenders.
Mohegan made commitments to many stakeholders, including the Mohegan people and the people of the Republic of Korea, thousands of whom relied on us for jobs and other economic and social benefits this resort brings to local communities. One of the principal reasons Mohegan was invited to South Korea as a casino license holder in 2016 was our family-owned approach and foundational commitment to regulatory compliance, public safety and community engagement. 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. 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.