The attempt by Bain Capital to acquire its multibillion-dollar integrated resort in South Korea, Inspire, has been fiercely resisted by the Mohegan Tribal Gaming Authority. The U.S.-based private equity group, which was the major lender to MGE Korea Limited, expedited its mezzanine loan and took over management of the resort’s operations. Mohegan argues that this approach would not benefit the property, its employees, clients, or other lenders.
Financial Disputes and Unresolved Negotiations
Mohegan clarified that it had not fallen behind on principal or interest payments, even if it admitted that it did not satisfy several financial covenant requirements. There are no needed principal payments prior to May 2027, when the loan, which is held by Bain Capital, is due.
The gambling operator disclosed that it had made multiple sincere attempts to modify lending conditions to conform to industry norms. Bain Capital, however, turned these down in favor of conditions that would give it payment priority over other Inspire lenders.
Mohegan is still dedicated to collaborating with South Korean authorities and stakeholders in spite of obstacles. It reiterated its commitment to making sure Inspire succeeds in the long run and stated that it plans to carry on with talks with Bain Capital.
“We have been and will continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution,” Mohegan stated.
Since receiving its casino license in 2016, Mohegan has contributed to job creation, economic growth, and regulatory compliance in South Korea. The company emphasized its family-owned approach and commitment to public safety and community engagement as key reasons it was invited to develop the project.
“One of the principal reasons Mohegan was invited to South Korea as a casino license holder was our family-owned approach and foundational commitment to regulatory compliance, public safety, and community engagement,” the company said.
As of December 31, 2024, Mohegan’s Korea Term Loan had a face value of $460.7 million and a book value of $436.9 million. Additionally, a Korea Credit Facility maturing in 2025 had a face value of $685.9 million and a book value of $669.5 million.
Although Mohegan acknowledged difficulties in meeting certain debt covenant performance targets, it insisted these were not related to any failure in meeting Inspire’s payment obligations.
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