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Casino promoter Genting Malaysia Bhd said in a filing on Friday that it had agreed the day before to subscribe to a "Series L" preferred stock of U.S.-based casino operator Empire Resorts Inc for up to $20 million.
Empire Resorts, the operator of Resorts World Catskills in upstate New York, became a federation of Genting Malaysia in 2019 and had vehicles owned by the Lim family, Genting's dominant Malaysian dynasty.
Genting Malaysia, the promoter of Resorts World Genting, Malaysia's only licensed casino complex, said in a filing with Bursa Malaysia on Friday that the proceeds from the Empire Resorts share subscription "will be used to finalise Empire's short-term refinancing plan for a total of US$350 million due March 23, 2021.
Resorts World Catskills reopened to the public on September 9 after being closed from March 16, 2020 as a precaution against the spread of COVID-19.
A filing from Genting Malaysia on Friday said: "The shutdown of Empire due to the pandemic has had a significant adverse impact on liquidity."
The company added: "Empire has sought to mitigate the liquidity impact from the closure of operations through aggressive cost control measures, such as reducing employee costs through furloughs and delaying non-essential capital expenditures."
The statement on Friday reiterated that in March and September last year, Genting Malaysia announced its subscription to Empire Resort's "Series G" preferred shares of up to $40 million and Series L preferred shares of up to $150 million. 토토사이트
The expiration date for this Series L exercise is December 31, 2038.
The incorporation of 200 preferred shares "convertible at any time after December 31, 2030 and before the maturity date" into 2 million units of common stock at a conversion price of US$10 per common stock.
The event will be held through Genting ER II LLC, Delaware, USA, an indirect, wholly owned subsidiary of Genting Malaysia.
Zenting Malaysia's loss-sharing of Empire resorts in fiscal 2020 was 285.1 million yuan ($69.2 million), according to a Feb. 26 filing with Bursa Malaysia.
Bank group Nomura said in a note on Genting Malaysia's business outlook for the second half of the year on Wednesday that the "pull" in earnings from Empire Resorts "needs to be addressed soon."