Genting Malaysia pumps RM175mil into US gaming unit Empire Resorts

KUALA LUMPUR: Genting Malaysia Bhd has agreed to inject fresh capital up to RM175mil into struggling US gaming unit Empire Resorts Inc.

The company, in a filing with Bursa Malaysia today said it had on March 18 agreed to subscribe up to US$40mil of series G preferred stocks in Empire.

"The proceeds from the equity injection will be utilised by Empire for the purposes of a refinancing plan and working capital," it said.

Empire is currently working on both short and long-term solutions to refinance its outstanding debt of US$540mil with a syndicate of banks.

"The proceeds also provide Empire additional funds for its working capital, if required in view of the recently announced temporary closure of Resorts World Catskills (RWC) by the authorities due to the COVID-19 pandemic," it said.

For the financial year ended 2019, RWC registered a 48% growth in total gross gaming revenue to US$208.7mil from US$140.6mil previously.

"Strategic efforts that capitalise on synergies with Resorts World Casino New York City have generated positive results for RWC with continuing GGR growth of 31% for the first two months of financial year ending Dec 31, 2020 compared with the same period in 2019," it said.