Empire Resorts is a 49%-associate of Genting Malaysia and it is currently working on both short and long-term solutions to refinance its outstanding debt of US$540mil with a syndicate of banks.
PETALING JAYA: The decision by Genting Malaysia Bhd
to inject US$40mil (about RM175mil) into its struggling US gaming unit Empire Resorts Inc will only have minimal impact on the former’s financial leverage, according to CGS-CIMB Research.
As the injection in the form of preferred stock subscription will be funded via internal cash resources, Genting Malaysia’s net debt to earnings before interest, tax, depreciation and amortisation (Ebitda) would only rise slightly from 2.45 times to 2.53 times by the end of financial year 2020 (FY20).
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