US tribal gaming operator Mohegan Tribal Gaming Authority has confirmed it is still in discussions with Bain Capital – the main lender who in February seized control of the company’s Korean integrated resort INSPIRE – over transition of duties and control as it works through a raft of potential ongoing financial risks.
In filings accompanying its results release for the June 2025 quarter, Mohegan said it was seeking resolution to its ongoing connections to INSPIRE, MGE Korea Limited and creditors – specifically as they relate to the duties of the company’s subsidiaries under a management agreement signed in 2021.
Mohegan has, however, realized a net gain of US$77.6 million after deconsolidating affected subsidiaries, which takes into account a US$137 million liability for the estimated value of certain subsidiary guarantees associated with the Korean integrated resort.
As reported by Inside Asian Gaming at the time, Bain Capital in February accelerated actions against INSPIRE’s operating entity MGE Korea Ltd following an event of default, subsequently assuming operation control of the IR. Bain Capital representatives stated at the time that the move “reinforces Bain Capital’s commitment to ensuring INSPIRE’s long-term success and competitiveness” although it has since been reported that the investment firm is looking to sell the asset.
In its latest filings, Mohegan said ongoing exposure includes a US$100 million Credit Enhancement Support Agreement for the payment by INSPIRE of principal, interest and other sums due under the Korea Senior Credit Facility. Although it believes all payments are up to date, the facility matures in November 2025 and while discussions around refinancing or extending had begun when it lost control of INSPIRE in February, “the Company has no ability to facilitate the process of obtaining the necessary refinancing or extension of the Korea Senior Credit Facility prior to its maturity, nor do we have visibility into the operations of INSPIRE to anticipate whether such efforts would be successful.”
Mohegan also referenced a Cash Deficiency Support Agreement inked with Hanwha Engineering & Construction and Hanwha Hotels & Resorts under which it could be liable for reimbursement to Hanwha of up to US$3 million. As of 30 June 2025, the company is required to maintain a letter of credit with Hanwha with a face amount equal to one year’s exposure on expenses above agreed amounts equal to US$4.2 million.
Likewise, Mohegan could be required to indemnify the lenders for any losses arising from “bad boy” acts including fraud, misappropriation or certain bankruptcy-related matters around INSPIRE, and has committed to make additional equity investments of up to US$36.9 million into INSPIRE if called upon to do so but in both instances said it has no reason to expect such a claim will be made.
It reiterated, however, that it maintains “no visibility into the operations of INSPIRE subsequent to” loss of control in February.
As of 13 August, “Discussions with Bain Capital are ongoing with respect to resolution of the company’s and its subsidiaries’ ongoing connections to Mohegan INSPIRE, INSPIRE, MGE Korea Limited and their creditors, including with respect to the full transition over time of the duties of the company’s subsidiaries under a management agreement with respect to Mohegan INSPIRE entered into in 2021,” Mohegan said.
“Until such transition is completed, certain of the Company’s subsidiaries may continue to provide certain services to INSPIRE.”
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