Management rights for the Mohegan INSPIRE resort in Incheon, South Korea, have been taken over by private equity firm Bain Capital.
The US-based firm has exercised its acquisition rights for INSPIRE’s parent firm MGE Korea Limited, in what appears to be a conversion of bonds in MGE Korea to equity.
The move was likely due to the financial difficulties the property has been experiencing since its opening, with lenders recently demanding repayment acceleration on a loan used to finance the $1.6 billion property.
The loan, totaling approximately $275 million, was backed by Bain – with the lender earlier this month demanding full repayment if the borrower failed to meet specific contract terms.
The management change also implies a rebranding of the property to Inspire Entertainment Resort.
According to an Inspire official quoted by media, the acquisition will not affect employee security or the routine operation of the resort.
Inspire’s current management is now working with Bain on a smooth transition.
