Key points:
- Mohegan has confirmed that Bain Capital has taken operational control of Inspire Entertainment Resort after calling in debt held by MGE Korea Limited
- Mohegan has stated that it did not miss any payments but failed to meet certain financial covenant requirements
- The company is continuing negotiations with Bain Capital while disputing the implications of the change in control
Mohegan has issued a statement confirming that Bain Capital has taken operational control of the Inspire Entertainment Resort in Incheon, South Korea, after accelerating a mezzanine loan linked to the project.
The change in control follows Mohegan’s failure to meet certain financial covenants, though the company has emphasised that it did not default on any principal or interest payments.
According to Mohegan, efforts were made to negotiate amendments to the financial covenants, but Bain Capital rejected these proposals.
The gaming operator claims that the investment firm’s counterproposals would have resulted in Bain prioritising its repayments over other lenders.
Despite the takeover, Mohegan has stated that it intends to continue negotiations in an attempt to reach a resolution that aligns with the interests of all stakeholders.
The situation marks a further development following Bain Capital’s announcement that it was taking control of Inspire Entertainment Resort, which opened in early 2024.
While Bain Capital has stated that the transition will not impact the resort’s daily operations, Mohegan has raised concerns over the long-term implications of the change in control.
The company has also highlighted its contributions to the development and management of the resort, including compliance, technology and marketing operations.
Good to know: The outcome of ongoing negotiations with Bain Capital will determine whether Mohegan retains any role in Inspire’s future operations
Mohegan’s financial position regarding Inspire had been outlined in its Q1 2025 results, which indicated that refinancing would be necessary to meet debt obligations.
The company acknowledged the possibility of liquidity issues without securing additional funding.
Following the release of the earnings report, Mohegan’s CFO, Ari Glazer, stated that the acceleration of the debt by Bain Capital was unexpected, occurring just hours after the company’s financial disclosures were made public
The dispute over Inspire Entertainment Resort represents a shift in Mohegan’s position in the South Korean market. While the company had previously been granted a casino licence in the country in 2016, its continued involvement in the resort remains uncertain.
