MONTICELLO – It didn’t take long for Empire Resorts to decide to sell its outstanding equity to the Malaysian casino organization rather than file for Chapter 11 bankruptcy protection.
Affiliates of Kien Huat Realty III and Genting Malaysia Berhad last week made an offer to Empire, the owner of Resorts World Catskills in Kiamesha Lake and Monticello Raceway in Monticello.
On Monday, Empire announced a definitive agreement under which the Malaysian group will acquire all of the outstanding equity of the company. Kien Huat currently holds some 86 percent of Empire Resorts’ outstanding shares.
With the purchase that is expected to close in the fourth quarter of the year, Empire Resorts will become a privately-held company and its common stock will no longer be listed on any public market.
Empire and Kien Huat also amended Kien Huat’s existing preferred stock commitment letter with the company, which enhances Empire’s access to capital through February 2020. The amendment increases Kien Huat’s commitments from $52 million to $77 million.
“With the resources and support of Kien Huat and Genting Malaysia, Empire Resorts will be better positioned financially and operationally, which will help us advance our mission of delivering a winning combination of luxury facilities, quality entertainment and exceptional customer service,” said Ryan Eller, president and CEO of Empire Resorts.
