United States-based private investment firm Bain Capital has taken over the operations of the Inspire casino resort in South Korea, according to a statement sent on Monday to GGRAsia. The property was developed – and had until now been operated – by U.S.-based Mohegan Tribal Gaming Authority.
“Bain Capital has assumed operational control of Inspire Integrated Resort to strengthen its financial foundation and accelerate its growth as a premier luxury destination,” said the asset management firm in its written announcement.
“With deep investment experience in [South] Korea and global expertise in hospitality, gaming, and leisure, Bain Capital is committed to enhancing Inspire’s position as a top-tier integrated resort in Asia,” the company stated.
It added: “Our focus will be on elevating the guest experience, expanding the VIP gaming segment, and optimising food and beverage and entertainment offerings.”
Bain Capital, based in Boston, Massachusetts, has about US$185 billion of assets under management.
In its statement to GGRAsia, Bain Capital said the “transition will be seamless for both employees and guests, ensuring uninterrupted operations”.
“We are excited to build on Inspire’s early success and unlock its full potential as a world-class luxury hospitality and entertainment destination,” the firm added.
A separate Monday press release from Inspire – which did not include the Mohegan brand in the property’s name – confirmed that Bain Capital had assumed operations of the resort, “as the result of Bain Capital’s exercise of its rights to take control of MGE Korea Ltd, the parent company of Inspire”.
It added: “This transition will have no impact on Inspire’s employees, guests, or day-to-day operations. Inspire’s existing management team and Bain Capital are working closely to ensure business continuity while implementing enhancements that will strengthen the resort’s market position.”
The announcement quoted an Inspire representative as saying: “Bain Capital has been a trusted partner and investor since the early development stages of the Inspire project, maintaining a strong and collaborative relationship with us.”
Inspire’s representative said the transition would “further solidify” the partnership with Bain Capital, in a bid to “enhance operational stability and drive long-term growth”.
GGRAsia approached the Mohegan group for comment but had not received a reply by the time this story was published.
The management of Mohegan revealed last week that lenders to MGE Korea Ltd – the promoter of the Inspire complex (pictured) – had made a move to take over MGE Korea’s shares.
“We received notice from the agent for the lenders to MGE Korea Ltd, the parent company of Inspire, that they have accelerated the HoldCo debt,” said Ari Glazer, Mohegan’s chief financial officer, on a call to discuss the group’s first fiscal quarter results.
“Further, the agent and Bain Capital, the principal lender, have purported to take certain remedies, including appropriation of the shares of MGE Korea Ltd,” he added.
Mohegan’s CFO stated last week that the company was “evaluating the propriety of these actions and considering the appropriate responses”.
Mr Glazer added that “the acceleration of the Korean HoldCo debt does not result in a cross default to any other debt” of the Mohegan group.
In mid-January, Mohegan said MGE Korea would be in default under the terms of a loan related to Inspire, known as the ‘Korea Term Loan’, as it had not been able to “satisfy certain financial covenant tests with respect to the period ended September 30, 2024”.
