trending Market Intelligence /marketintelligence/en/news-insights/trending/hCbXYApx3UMLgYCg-xs9yA2 content esgSubNav
In This List

Empire Resorts details deals to improve financial position


Insight Weekly: Banks brace for recession; Europe PE deal values soar; US solar imports rebound


According to Market Intelligence, December 2022


Insight Weekly: Layoffs swell; energy efficiency PE deals defy downturn; 2023 global risk themes


Insight Weekly: Energy crisis cripples Europe; i-bank incomes rise; US holiday sales outlook

Empire Resorts details deals to improve financial position

Intended to help strengthen its financial position, Empire Resorts Inc. and its largest stockholder, Kien Huat Realty III Ltd., agreed on a number of transactions.

Kien Huat agreed to exchange a roughly $36.2 million promissory note for about 1,380,000 shares of Empire common stock, pursuant to a condition on a $20 million loan secured from Bangkok Bank PCL New York Branch.

The loan supports Empire's existing commitments to make an additional $9.9 million equity investment into a subsidiary that is developing Resorts World Catskills and connected development projects in Sullivan County, N.Y.

Kien Huat is also providing Empire with a $20 million loan to repay the Bangkok Bank loan, if needed.

Empire and its stockholder agreed to terminate the latter's $35 million backstop commitment for the company — earmarked for the Resorts World Catskills development and for general corporate purposes — if the former launches another rights offering with terms similar to one commenced in January 2016.

The stockholder also agreed to a one-year extension of an agreement, which will now end on or about February 2020, that says it will not launch a bid to privatize the casino developer and operator without prior approval of the majority of Empire Resorts' minority shareholders and a majority of the disinterested directors.