INSPIRE Entertainment Resort President Chen Si has told Inside Asian Gaming that the property’s new owner – private investment firm Bain Capital – is bullish on the property’s long-term potential and comfortable with its current ramp trajectory.
That’s despite Bain Capital, which was principal lender to INSPIRE’s former parent Mohegan Gaming, having this week accelerated Mohegan’s debt and appropriated its shares in holding company MGE Korea Ltd on the basis of INSPIRE having failed to meet previously agreed financial targets.
Mohegan had revealed in January that it was in default under the terms of a US$275 million “Korea Term Loan” for the US$1.6 billion Korean IR but said at the time it was in discussions with lenders and was confident of a solution given its sufficient cash and liquidity position.
According to Chen, Bain Capital’s confidence in the integrated resort’s prospects is why it stated in a Monday press release that it plans to maintain the status quo as owner rather than make any wholesale changes.
“That means no change to the management team, to the organizational structure. The fact that Bain wanted to take over shows they are really bullish,” he said.
Chen noted that Bain Capital has held boardroom representation of INSPIRE since day one and as such maintains a strong relationship with the management team.
“The communication has always been open with the Bain Capital team and we’re very clear what their intentions are,” he continued.
“It’s business as usual. I’m still here. Bain Capital is not going to change the organization or the management team. They will help set the strategic direction but won’t be involved on a day-to-day basis.”
Key changes yet to be determined primarily revolve around issues like the property’s IT systems and branding, although the INSPIRE name is expected to remain.
Chen, meanwhile, said he was satisfied with the progress of INSPIRE’s casino operations, which he confirmed have continued to show steady growth into the early part of 2025.
In its 4Q24 earnings call last week – the same event at which it first revealed Bain Capital had accelerated the debt – Mohegan reported a 2.1% sequential increase in net revenues at Mohegan INSPIRE in the December quarter to US$63.5 million, while an Adjusted EBITDA loss of US$4.2 million was narrowed from US$6.9 million in Q3.
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