Genting commits an additional $100M to New York casino division

Genting commits an additional $100M to New York casino division

Genting Malaysia, a Malaysian conglomerate responsible for a variety of businesses, including gaming & hospitality, has announced that it will inject a substantial amount of $100 million in fresh capital to revive the Empire Resorts in New York. This strategic decision underlines Genting Malaysia's steadfast commitment to the resurgence and strengthening of the New York-based Empire Resorts. As per information provided by Genting Malaysia, this strategic capital infusion will be conveyed through the purchase of preferred stock, which will mark the company’s ongoing efforts to fortify the foundations of the beleaguered casino operator.

Soon after the announcement, analysts were quick to predict that the capital infusion would reshape the trajectory of the Empire Resorts, solidifying Genting Malaysia's foothold in the dynamic gaming landscape of the Empire State.

In its latest regulatory filing, the operator stated, “The proposed equity injection will also allow Genting Malaysia to reinforce its position and grow its market presence in the expanding New York State gaming market to compete effectively in the north-eastern U.S. region. Resorts World Catskills will also be able to continue benefiting from the operating synergies with Resorts World New York City.”

The $100 million lifeline, mentioned in the company’s recently filed regulatory filing, paints a narrative of resilience and determination. It may be noted here that acquisition of preferred shares is a financial instrument that bridges equity and fixed-income attributes. A noteworthy feature of this kind of investment is the convertibility of the preferred shares into common equity. In the Empire Resorts’ case, preferred shares will be converted into common equity post-December 31, 2030, which also signifies a long-term commitment to the casino entity’s resurgence.

Empire Resorts, a gambling-friendly property once on the brink of bankruptcy and subsequently privatized by Kien Huat Realty III and Genting, has thus far received more than $700 million in funding from Genting to rejuvenate its struggling business. From the latest capital infusion, it will deploy $58 million to settle an existing bank loan. The remaining funds will be used for general corporate purposes.

The strategic capital infusion not only safeguards the Empire Resorts' immediate financial needs but also positions its operator strategically in the high-stakes arena of gaming landscape of New York. With a resolute commitment and a keen eye on the future, the Malaysian casino operator wants the Empire Resorts to emerge not only as a revitalized venue but to attain success in the vibrant New York casino market.

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