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Private equity firm Bain Capital has taken control of Inspire Entertainment Resort on Yeongjong Island, the largest integrated resort in South Korea. This follows financial difficulties faced by Mohegan Gaming & Entertainment (MGE), whose South Korean subsidiary defaulted on a substantial loan.
Bain Capital confirmed on Monday for The Korean Economic Daily that it had obtained a controlling interest in MGE Korea, the South Korean branch of U.S.-based Mohegan Gaming & Entertainment. MGE Korea previously held full ownership of the luxury resort, but after defaulting on a $275 million loan from multiple lenders in November 2021, it lost management control.
The resort, situated near Incheon International Airport, spans 461,661 square meters—comparable to 64 soccer fields. It features three five-star hotels with a combined total of 1,275 rooms, a 15,000-seat performance arena, an indoor water park under a glass dome, and a large-scale convention center capable of hosting up to 4,000 guests. Additionally, Inspire is the country’s largest foreigner-exclusive casino.
Financial Struggles and Bain Capital’s Intervention
Despite an investment of $1.6 billion, MGE Korea has struggled financially since the resort’s grand opening in January last year. By September, Inspire had recorded revenue of KRW 219 billion ($152 million) but suffered a net loss of KRW 265.4 billion ($152 million). In its most recent fiscal year (October 2023–September 2024), the resort posted an operating loss of KRW 156.4 billion ($108 million).
Bain Capital exercised its rights to take control of MGE Korea after the parent company was unable to meet its loan obligations. Consequently, the resort’s official name has been changed from Mohegan Inspire Entertainment Resort to Inspire Entertainment Resort.
During Mohegan’s fourth-quarter 2024 earnings call, the company’s COO, Ari Glazer, acknowledged the transition, stating, “Following the earnings release this morning and just a few hours ago,…
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Bain Capital takes control of MGE Korea
The investment firm says MGE defaulted on a loan used to finance the integrated resort.
South Korea.- Bain Capital has announced it has taken operational control of the South Korean casino resort Mohegan Inspire. The company reportedly took the decision because Mohegan Gaming & Entertainment (MGE) defaulted on US$275m in loans used to finance the integrated resort (IR).
However, MGE issued a statement claiming that, while Mohegan did not satisfy certain financial covenant tests, “it has not missed a payment of principal or interest.”
The statement reads: “The loan held by Bain Capital does not mature until May 2027, with no principal payments due before the maturity date. We made several good faith proposals for amending the financial covenants that are consistent with market precedents. However, Bain Capital has dismissed those proposals and provided counterproposals that would result in Bain Capital receiving large payments ahead of other Inspire lenders.”
It added: “We have been and will continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution that allows us to be continuing partners with the people of Korea and our various stakeholders. We do not believe the change-of-control pursued by Bain Capital is in the best interests of the property, its team members and customers, other lenders and various key stakeholders.”
Mohegan Inspire held a soft opening on November 30, 2023 and a full opening last March. It has over 150 table games, 390 slot machines, and 160 electronic table games (ETG). It has a floor for VIP guests featuring a Guandong-style restaurant.
Mohegan Inspire held a soft opening on November 30, 2023 and a grand opening last March.
A week ago, MGE shared its financial results for the first quarter of financial year 2024/2025. It…
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All seemed to be going well for the Mohegan INSPIRE Entertainment Resort in South Korea. Unfortunately for the ambitious tribal operator, financial hurdles led to private equity firm Bain Capital securing a controlling stake in Mohegan’s Korea-facing division, MGE Korea.
In the aftermath of the takeover, Mohegan vowed to continue to negotiate an outcome that would be favorable to its investors.
Bain Accelerated the MGE Korea Mezzanine Loan
MGE reportedly defaulted on around $275 million in loans, despite the promising financials of its INSPIRE resort. Strategically situated on Yeongjong Island, this daring project represented Mohegan’s ambitions to grow on an international scale.
Mohegan INSPIRE opened its doors in January 2024 and launched casino gaming shortly after. As the largest integrated resort in South Korea, the property sought to capitalize on the demand for casino entertainment amid the rapid growth of Asian gaming.
Reports, however, claimed that MGE Korea failed to repay the loans it had borrowed in 2021. The loans were reportedly taken from various sources and helped Mohegan with its $1.6 billion project. Bain Capital was MGE Korea’s principal lender.
As MGE Korea defaulted on its loans, Bain Capital acquired a controlling stake in the Korean arm. The private equity firm confirmed that on Monday but refused to disclose further details about this move.
Mohegan Officials Confirmed the Takeover
Mohegan officials also commented on the matter, confirming Bain’s takeover of MGE Korea. The company elaborated that it had tried to prevent this scenario by negotiating amendments to its loan agreements. Unfortunately for Mohegan, Bain Capital rejected the proposals.
We made several good faith proposals for amending the financial covenants that are consistent with market precedents. However, Bain Capital has dismissed those proposals and provided counterproposals that would result in Bain Capital receiving large payments…
Mohegan, the gaming and entertainment company that owns Mohegan Sun, acknowledged late Tuesday night that Bain Capital, the Boston-based investment firm, has taken control of Inspire, the nearly $1.7 billion resort Mohegan opened a year ago in Incheon, South Korea.
Bain, the principal lender to MGE Korea Limited, the Mohegan subsidiary that owned Inspire, announced Monday it was exercising its right to take control of the subsidiary after an event of default.
In a statement posted on its website, Mohegan said that while it did not satisfy certain financial covenant tests, it had not missed a loan payment of principal or interest.
“Specifically, the loan held by Bain Capital does not mature until May 2027, with no principal payments due before the maturity date,” Mohegan said. “We made several good faith proposals for amending the financial covenants that are consistent with market precedents. However, Bain Capital has dismissed those proposals and provided counterproposals that would result in Bain Capital receiving large payments ahead of other Inspire lenders.”
An agent for Bain and other lenders behind a $275 million loan put Mohegan on notice last week that they had “accelerated” the debt, meaning they were demanding repayment of the entire balance of the loan.
“Further,” Ari Glazer, Mohegan’s chief financial officer, told investors on a quarterly earnings call, “the agent and Bain Capital, the principal lender, have purported to take certain remedies, including appropriation of the shares of MGE Korea Limited.”
Mohegan executives said during the call they were considering “appropriate responses” to the lenders’ notice.
Bain Capital said the change in Inspire’s ownership will have no impact on the resort’s…
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Mounting Financial Woes
Despite INSPIRE being one of South Korea’s significant investments, MGE South Korea has faced financial difficulties since its grand opening in January 2024. By September of last year, the IR had hemorrhaged KRW265.4 billion (US$152.18 million) in net losses despite generating a record revenue of KRW219 billion (US$184.42 million).
Mohegan also failed to clear a US$275 million “Korea Term Loan”, explaining that, at the time, it was confident in its ability to access sufficient cash and liquidity. Additionally, the resort was required to reach financial targets contained within its loan documents.
Business as Usual
Bain Capital may have exercised its right to take over INSPIRE, but it insists the transition will not cause interruptions. The establishment’s employees, guests, and day-to-day operations will continue as usual. In a statement, Bain Capital stated, “Although the management rights have been transferred to Bain Capital, there will be no immediate changes in the executive team.”
The company also emphasized its commitment to establishing a strong collaborative relationship with staff and investors to maintain INSPIRE’s sustainable growth. It added, “As a long-term investor with a strong track record in Korea, Bain Capital will provide full support to enhance INSPIRE’s financial performance, elevate guest experience, and drive sustained growth.”
About INSPIRE
Previously known as Mohegan INSPIRE, INSPIRE Entertainment Resort had a soft launch of non-gaming commercial operations in 2023. It later opened a foreigner-exclusive casino in February 2024.
The establishment spans an expansive 461,661 sq ft, featuring three five-star hotels with 1,275 rooms combined. Other amenities include a 15,000-seat performance arena, a 4,000-capacity convention center, and an indoor waterpark under a glass dome. It also hosts South Korea’s largest foreigner-only casino.