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Wednesday, August 21, 2019

Top Stories > Business

Casino sees $36.1 million loss for second quarter

Considers bankruptcy

Aug 12, 2019

By Patricio Robayo - staff writer

By: Democrat File Photo | Patricio Robayo
THOMPSON — For the second time this year, Empire Resorts Inc., the parent company of Resorts World Catskills, is reporting a loss.
Empire Resorts filed a loss of $36.1 million for the second quarter of 2019.
The casino previously reported a first quarter loss of $37 million and recently closed down its video slot betting operations at the Monticello Casino and Raceway, which is owned by Empire Resorts.
This brings the total loss this year for Empire Resorts to $73 million.

A recent filing with the Securities and Exchange Commission (SEC) details how the majority stakeholder in Resorts World Catskills Casino intends to take the company private.
The family trust of K.T. Lim, Kien Huat Realty III Ltd., owns the majority of Empire Resorts.
The filing states that Kien Huat and Genting Malaysia Berhad—a public limited liability company that is incorporated in Malaysia— proposed on August 5 to acquire all of the outstanding equity of Empire Resorts.
According to Lim's spokesperson, taking the company private will help the struggling casino.
According to the filing, Genting and Kien Huat are purchasing 13.2 million shares valued at $9.74 a share, making the agreement worth up to $128.6 million.
The agreement is pending Empire Resort's board approval.
Empire Resorts is considering declaring bankruptcy, according to its latest filing.
They have stated, “Given our continuing negative cash flows from operations, and in order to meet our expected cash needs for the next 12 months ... we may not have enough cash and working capital to fund the operations, ... we may be required to seek bankruptcy.”

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