Casino operator Genting Malaysia Bhd is injecting $150 million cash into its US-based unit Empire Resorts Inc for working capital and financing purposes, the company said.
The casino, amusement park, and resort group said it entered into a subscription agreement to subscribe for up to $150 million of Series L preferred stock of Empire, an indirect wholly-owned subsidiary. Genting Malaysia had in March also announced an equity injection of $40 million into Empire via a subscription agreement for Empire’s Series G preferred stocks.
“In addition, Empire will require funds to fulfill its short-term debt obligations within the next six months,” the company said in a filing late on Friday, adding that Empire will continue with its long-term refinancing plans.
The company said US authorities had in March directed all gaming resort operations to be suspended in efforts to curb the spread of the coronavirus and consequently Empire had temporarily closed its entire gaming operations.