Resorts World Catskills receiving Genting Malaysia Berhad lifeline

Minority shareholders in Asian casino operator Genting Malaysia Berhad are reportedly unlikely to be pleased with the company’s recent decision to pump another $150 million into its loss-making Empire Resorts Incorporated subordinate.

According to a report from GGRAsia, this is the opinion of international brokerage Nomura Securities Company Limited after the Malaysian firm revealed the substantial cash injection for the entity behind upstate New York’s struggling Resorts World Catskills property on Friday.

Solicitation slip:

GGRAsia reported that Genting Malaysia Berhad spent approximately $128.6 million to fully acquire Empire Resorts Incorporated some ten months ago and subsequently failed in an attempt to raise around $465 million via a long-term bond offering. The source detailed that this was followed by the enterprise’s 332-room New York property racking up a first-quarter loss of about $53 million before being entirely shuttered for a 25-week period owing to the coronavirus pandemic.

Ally antagonism:

Nomura Securities Company Limited analysts Alpa Aggarwal and Tushar Mohata reportedly declared that investors in Genting Malaysia Berhad ‘were likely to be unhappy’ with this newest backing as it is ‘not going to be subject to a shareholder vote’. The pair furthermore explained that the share price for the Kuala Lumper-listed operator fell by some 12% in August of last year directly after it revealed its intent to purchase Empire Resorts Incorporated, which has run the $1 billion Resorts World Catskills since the property’s inauguration in February of 2018.

Reportedly read a joint statement from Aggarwal and Mohata…

“Empire Resorts Incorporated and Resorts World Catskills are likely to remain loss-making for the immediate future as operations were already struggling before the coronavirus-induced demand collapse.”

Provisional pardon:

The analysis from Nomura Securities Company Limited reportedly also pronounced that Genting Malaysia Berhad is to now be prohibited from authorizing ‘any more material related-party transactions’ for a full year without triggering a shareholder vote.

The statement from Aggarwal and Mohata reportedly read…

“We are negatively surprised that Genting Malaysia Berhad’s backing was not enough to secure financing for Empire Resorts Incorporated. Now that Resorts World Genting is again generating revenues, we feel it is imperative that Empire Resorts Incorporated soon secures financing at attractive interest rates if it is to turn profitable, lest Genting Malaysia Berhad has to shoulder further recapitalization.”

malaysiagenting malaysia berhadnomura securities company limitedempire resorts incorporatedresorts world catskillscoronavirusalpa aggarwaltushar mohata

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