Is Resorts World Catskill Filing For Bankruptcy?
The biggest casino in upstate New York was reportedly considering filing for bankruptcy.
Resorts World Catskills in Sullivan County is over $400 million in debt and lost $73 million during the first six months of 2019, NYUP reports.
News leaked last week the $1.2 billion entertainment business is considering a pre-packaged bankruptcy.
A Securities & Exchange Commission report highlighted the potential bankruptcy and casino's financial troubles. It also suggested Kien Huat, a Malaysian-based real estate investment company, the major shareholder for Resorts World Catskills and Empire Resorts, could buy all of the outstanding equity not already owned and make the casino private.
On Monday, Empire Resorts, Inc. announced a definitive agreement under which affiliates of Kien Hua and Genting Malaysia will acquire all of the outstanding equity of the company not currently owned by Kien Huat.
"We are pleased to reach this agreement and provide immediate certain cash value to our stockholders," said Keith Horn, independent director of Empire Resorts and chair of the special committee. "Kien Huat has been a true partner for Empire Resorts, and we look forward to welcoming Genting Malaysia into our ongoing relationship. With Kien Huat and Genting Malaysia, we will be part of an extensive and attractive organization with enhanced scale and global reach. Importantly, Kien Huat has agreed to provide incremental credit support to Empire Resorts, which will enable the Company to meet its debt obligations as we continue to execute on our business strategy."
The Empire Resorts Board of Directors approved the transaction on the unanimous recommendation of a special committee of independent directors.
"With the resources and support of Kien Huat and Genting Malaysia, Empire Resorts will be better positioned financially and operationally, which will help us advance our mission of delivering a winning combination of luxury facilities, quality entertainment and exceptional customer service.," President and Chief Executive Officer of Empire Resorts Ryan Eller said. "This transaction is a win-win for all our stakeholders, including our stockholders, customers, employees, creditors and the communities in which we operate. Importantly, we expect our employees will benefit from new opportunities for career development as part of a larger organization. I look forward to working closely with Kien Huat and Genting Malaysia to seamlessly complete the transaction."
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