KUALA LUMPUR: Genting Malaysia Bhd is undertaking a RM2.2 billion restructuring of its wholly owned US subsidiary, Empire Resorts Inc to strengthen its capital structure and sharpen its long-term strategic focus in the northeastern US gaming market.
In a filing with Bursa Malaysia today, Genting Malaysia said Empire Resorts will dispose of its non-gaming assets – including Resorts World Catskills Hotel, Alder Hotel, Monster Golf Course, RWC Epicenter and various restaurants – to the Sullivan County Resort Facilities Local Development Corporation (SCRFLDC) for US$525 million (RM2.2 billion).
Proceeds from the sale will be used to acquire 1,554.6 acres of land from EPR Properties for US$201.3 million (RM848.1 million), giving Empire Resorts full ownership of the land under both its gaming and non-gaming operations, along with additional development-ready land.
The acquisition eliminates prior lease obligations, enabling Empire Resorts to better control its strategic assets.
The disposal proceeds will also be used to fully redeem Empire Resorts’ outstanding US$300 million senior unsecured notes due November 2026. This early redemption will leave Empire Resorts debt-free and significantly improve its financial position by eliminating high-interest payments.
Following the asset sale, Empire Resortswill lease back the non-gaming properties from SCRFLDC under a long-term land lease running through 2066, ensuring continued operational control.
Additionally, Empire Resorts will manage these assets under a 20-year agreement with SCRFLDC, with automatic renewals of up to 10 more years.
The restructuring is expected to improve Empire Resorts’ cost structure by removing lease payments to EPR and reducing interest expenses, while generating a surplus of about US$10 million (RM42.1 million) to support working capital.
Genting Malaysia said this strategic realignment enhances Empire Resorts’ financial flexibility and asset base, reinforcing its competitiveness in the New York State gaming sector.
The group added that Empire Resorts and SCRFLDC are currently finalising the detailed terms of the agreements.
This marks a key milestone in Genting Malaysia’s ongoing efforts to streamline its international operations and maximise long-term shareholder value.