Bain Capital has taken over operational control of Mohegan INSPIRE casino resort in South Korea, after Mohegan failed to satisfy certain financial covenant tests.

The Mohegan Tribal Gaming Authority confirmed the change-of-control this week after receiving notices that Bain Capital, the principal lender to Mohegan INSPIRE’s parent company MGE Korea, had accelerated its mezzanine loan and taken control of the casino resort.

Mohegan said that while it did not satisfy certain financial covenant tests, the company had not missed a payment of principal or interest.

“Specifically, the loan held by Bain Capital does not mature until May 2027, with no principal payments due before the maturity date,” the company explained. “We made several good faith proposals for amending the financial covenants that are consistent with market precedents.

“However, Bain Capital has dismissed those proposals and provided counterproposals that would result in Bain Capital receiving large payments ahead of other Inspire lenders.”

Mohegan said it had made commitments to many stakeholders, including the Mohegan people and the people of the Republic of Korea, creating thousands of jobs and providing other economic and social benefits to local communities.

“One of the principal reasons Mohegan was invited to South Korea as a casino license holder in 2016 was our family-owned approach and foundational commitment to regulatory compliance, public safety and community engagement,” continued Mohegan. “Since developing and launching Inspire, we have applied our extensive operational experience in the gaming industry, including providing Inspire with essential services in the areas of compliance, finance, technology, human resources and marketing.

“We were committed to the long-term success of Inspire and to the continued expansion of the Incheon site. We have been and will continue to attempt to negotiate in good faith with Bain Capital to find a mutually agreeable solution that allows us to be continuing partners with the people of Korea and our various stakeholders.

Mohegan concluded: “We do not believe the change-of-control pursued by Bain Capital is in the best interests of the property, its team members and customers, other lenders and various key stakeholders.”

Mohegan INSPIRE opened in February 2024 and contributed revenue of $63.5 million in Mohegan’s fiscal first quarter ended 31 December.