After $275M default, Bain Capital takes control of South Korea’s INSPIRE resort

Bain Capital has taken over operational control of INSPIRE Entertainment Resort in South Korea from U.S. tribal casino operator Mohegan, following a loan covenant default by the resort’s parent company, MGE Korea Ltd.  

The move comes after Mohegan defaulted on a $275 million Korea Term Loan, triggering Bain Capital, its principal lender, to exercise its rights over MGE Korea Ltd. The resort, previously known as Mohegan INSPIRE, will now operate as INSPIRE Entertainment Resort, reflecting the ownership shift.  

“This strategic move reinforces Bain Capital’s commitment to ensuring INSPIRE’s long-term success and competitiveness,” Bain Capital said in a statement to IAG. “INSPIRE will continuously accelerate its drive to solidify its position as one of Asia’s premier entertainment destinations.”  

Bain Capital emphasized that the transition will not impact employees, guests, or daily resort operations. The firm pledged full support to INSPIRE’s existing management team, ensuring business continuity while implementing enhancements to strengthen the resort’s market position.  

“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,” the company added.  

INSPIRE reported a net loss of 265.4 billion won ($184 million) for fiscal 2023 (Oct 2023–Sept 2024), adding to its financial challenges.  

Mohegan had maintained that its default was due to failing to meet financial performance targets rather than missed payments. The company attempted to renegotiate loan terms but failed to secure an agreement with its lenders.  

“We are evaluating the propriety of these actions and considering the appropriate responses,” Mohegan COO Ari Glazer said. “We had made multiple proposals to lenders for amendments to give us more time to meet financial targets, none of which were accepted.”  

INSPIRE opened its non-gaming facilities in November 2023 and launched its foreigner-only casino in February 2024. Despite initial hurdles, the resort has shown steady month-over-month improvement, with record-high mass and premium mass gaming revenue in December.  

In Q4 2024, the resort reported net revenue of $63.5 million, up 2.1% from Q3, and an Adjusted EBITDA loss of $4.2 million, an improvement from Q3’s $6.9 million loss  

“We believe this transition will further solidify our partnership and accelerate INSPIRE’s sustainable growth,” an INSPIRE representative said. “With Bain Capital’s deep industry expertise, extensive experience, and strong teamwork with our management, we are confident that this move will enhance operational stability and drive long-term growth.”  

INSPIRE, located near Incheon International Airport, features a 1,275-room five-star hotel, performance arena, water park, and a foreigner-only casino.