US tribal casino operator Mohegan says it is looking to resolve all remaining financial links to Korean integrated resort INSPIRE after its obligations under a US$100 million credit enhancement support agreement were relieved earlier this month.
As reported by Inside Asian Gaming, the main lender to the US$1.6 billion integrated resort project in Incheon, Bain Capital, seized control of the property in February after accelerating actions against INSPIRE’s operating entity MGE Korea Ltd following an event of default.
Mohegan has since been relatively quiet over the situation other than stating in August that it was in ongoing discussions with Bain Capital over transition of duties and control as well as ongoing financial risks.
In its 4Q25 and FY25 and earnings call on Friday (Asia time), the company said those risks had now been mostly eliminated.
“We understand that subsequent to the quarter end, INSPIRE completed a refinancing of its senior credit facility and that the original construction loan was fully repaid in early December,” said Mohegan’s Chief Financial Officer, Ari Glazer.
“We believe this relieves Mohegan’s obligations under our US$100 million credit enhancement support agreement, however we’re still in the process of determining the exact legal status.”
While some smaller contingent liabilities remain in place, Glazer added that around US$21 million in letters of credit which were committed against the Mohegan restricted group’s revolver have since sunset, creating more borrowing capacity under the revolver moving forward.
In comments accompanying the earnings call, outgoing Mohegan CEO Ray Pineault admitted its investment into INSPIRE “did not achieve our expectations” but insisted the company had “approached every decision with rigor, discipline and commitment to protecting Mohegan’s long-term value.
“We made the deliberate decision not to deploy further capital and as a result we are not currently an equity holder in the project,” he said.
In a note, CBRE Credit Research observed that Mohegan’s US$100 million credit enhancement support agreement has been an overhang on the credit since last year’s ownership change, including during the company’s own refinancing efforts earlier this year.
“So this should be viewed positively and further support our Outperform recommendations,” the brokerage wrote.
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