Genting Malaysia provides $20m to Empire Resorts

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Genting Malaysia provides $20m to Empire Resorts

Genting Malaysia has said it will subscribe up to $20m to US-based Empire Resorts.

On Friday, the company announced it was prepared to enter into an agreement which will see it provide $20m in “Series L preferred Stock”.

The funding will boost Empire Resorts equity and ensure it can fulfil its debt obligations after being hit by the Covid-19 pandemic.

Empire Resorts operates ‘Resorts World Catskill’ in New York; the site has been closed since March 2020 and was only reopened to the public in September that year.

Genting Malaysia had supported the Resort during these restrictions as it invested $40m in March 2020, which was followed by a $150m injection in September.

The latest investment could also make Genting Malaysia a majority shareholder. Currently, The Malaysian company currently owns 49% of shares, while Kien Huat Reality holds 51%.

The new transaction could see it claim 58% of Empire Resorts by 2030, when both companies could convert outstanding shares into common stock.

Genting Malaysia said: «The Proposed Equity Injection will enable Empire to have funds to fulfil its financing conditions to complete the short-term refinancing plan

“The injection will also allow Genting Malaysia to continue securing its position to participate in the prospects and future growth of Empire, particularly in relation to the Orange County Opportunity and the potential expansion of sports betting opportunities within the state of New York.»