Bain Capital has taken operational control of the Mohegan Inspire casino resort in South Korea after Mohegan Gaming & Entertainment (MGE) defaulted on a $275 million loan used for financing the integrated resort. MGE, however, contends that while it did not meet certain financial covenant tests, it has not missed any principal or interest payments.

MGE clarified that the loan from Bain Capital does not mature until May 2027, with no principal payments due before that date. The company has made several proposals to amend the financial covenants, which Bain Capital has rejected in favor of counterproposals that would prioritize its payments over those of other lenders. MGE expressed its intention to negotiate in good faith with Bain Capital to reach a solution that benefits all stakeholders involved.

Mohegan Inspire had a soft opening on November 30, 2023, followed by a full opening in March. The resort features over 150 table games, 390 slot machines, and 160 electronic table games, along with a VIP area that includes a Guandong-style restaurant.

Recently, MGE reported its financial results for the first quarter of the 2024/2025 fiscal year, showing a net revenue of $498.9 million, a 17.3% increase from the previous year. The group-wide EBITDA was $85.1 million, up 7.6%, although the company still posted a net loss of $85.9 million, an improvement from the $97 million loss a year earlier.

The revenue growth was attributed to strong performance at Mohegan Sun in the U.S. and ongoing success from Mohegan Digital. Mohegan Inspire generated net revenue of $63.52 million, a significant rise from $5.1 million before the casino opened. However, it recorded a negative adjusted EBITDA of $4.19 million, although this was an improvement from the $10.9 million loss in the same period last year.

Overall, the situation highlights the financial challenges faced by MGE and the implications of Bain Capital's control over the resort.