Mohegan disputes Bain Capital’s takeover of South Korea’s Inspire resort

Mohegan Tribal Gaming Authority said it does not believe Bain Capital’s takeover of its South Korean resort, Inspire, is in the best interests of the property, its employees, customers, or other lenders, as the U.S.-based private equity firm moves to assert control over the multi-billion-dollar development.  

Bain Capital, the principal lender to MGE Korea Limited, accelerated its mezzanine loan and took over operations of the integrated resort, Mohegan said in a statement on Tuesday. The property, which opened its non-gaming facilities in November 2023 and a foreigner-only casino in February 2024, was envisioned as a premier gaming and entertainment destination in Asia.  

"Despite near-term hurdles that are common in new resorts of this scale, Mohegan believes we put the essential components in place for long-term success, and the property needs more time to achieve its full potential," Mohegan said.

Mohegan acknowledged it had not met certain financial covenant tests but emphasized that it had not missed any principal or interest payments. The loan held by Bain Capital is not due until May 2027, with no required principal payments before that date, Mohegan said.

The casino operator added that it had made "several good faith proposals" to amend the loan covenants in line with market norms, but Bain Capital dismissed these and instead proposed terms that would allow it to secure "large payments ahead of other Inspire lenders."  

Mohegan also underscored its broader commitments to South Korea, saying that since being granted a casino license in 2016, it has contributed to job creation, economic growth, and regulatory compliance.  

"One of the principal reasons Mohegan was invited to South Korea as a casino license holder was our family-owned approach and foundational commitment to regulatory compliance, public safety, and community engagement," Mohegan said.  

Mohegan stated that it remains committed to working with South Korean authorities and stakeholders to ensure Inspire’s long-term success and vowed to continue negotiations with Bain Capital.  

"We have been and will continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution," Mohegan added.

As of December 31, 2024, Mohegan's Korea Term Loan had a face value of $460.7 million, with a book value of $436.9 million. A separate Korea Credit Facility, maturing in 2025, had a face value of $685.9 million and a book value of $669.5 million.  

Mohegan previously acknowledged challenges in meeting some debt covenant performance targets but maintained these were "not related to any failure to meet our payment obligations at Inspire."