Asian casino operator Genting Malaysia Berhad has reportedly announced that it soon intends to inject up to $150 million into Empire Resorts Incorporated so as to help the American firm better recover from the impacts of the coronavirus pandemic.
According to a report from Forbes, Nasdaq-listed Empire Resorts Incorporated is responsible for upstate New York’s giant Resorts World Catskills casino resort as well as the nearby Monticello Raceway harness horseracing track and is thought to have debts worth in the region of $365 million. The firm was purportedly forced to completely shutter both of these facilities for five months last year during the height of the coronavirus pandemic before restarting operations in the autumn under a strict set of public health and social distancing protocols.
Empire Resorts Incorporated has since reportedly benefitted from this revival and saw its most recent second-quarter earnings before interest, tax, depreciation and amortization hit $3.5 million to improve its net first-half debt by around 36% year-on-year to approximately $199.9 million.
For its part and Genting Malaysia Berhad has reportedly held a 49% stake in Empire Resorts Incorporated since November of 2019 while the Kuala Lumpur-listed firm’s billionaire Chairman, Lim Kok Thay, controls the remaining shares via his own Kien Huat Realty investments arm. The Malaysian company purportedly used an official filing to declare that the coming cash infusion will permit the subordinate to repay debts and ‘reinforce its position and grow its market presence in the New York gaming market’.
Genting Malaysia Berhad reportedly declared that it moreover intends to premiere programs that will allow Resorts World Catskills and its sister Resorts World New York City property to ‘leverage synergies’ while simultaneously launching ‘joint marketing initiatives’ with its recently-opened Resorts World Las Vegas development.
Reportedly read a statement from Genting Malaysia Berhad…
“While the international travel market has shown signs of revival, recent coronavirus developments continue to pose uncertainties to the outlook of tourism, leisure and hospitality sectors. The regional gaming market is expected to remain challenging in the short-term.”
Genting Malaysia Berhad reportedly divulged that the fresh injection of capital is to furthermore allow Empire Resorts Incorporated to implement a long-term financing plan and achieve an optimal capital structure. This news was purportedly welcomed by prominent credit ratings agency Fitch Ratings Incorporated as it raised the American casino operator’s outlook from negative to stable and upgraded its appraisal by one notch to B+.
Alongside its trio of properties in the United States and Genting Malaysia Berhad is reportedly responsible for large casino resorts in the Philippines, Singapore, Malaysia and the United Kingdom while simultaneously holding a substantial stake via its Genting Hong Kong Limited subordinate in cruise ship operator Star Cruises.