Less than two weeks after considering filing for Chapter 11 bankruptcy, New York’s largest upstate casino chose to accept a buyout from a private company instead.
Empire Resorts, owner of Resorts World Catskills, announced late Monday that it planned to sell its remaining shares of the $1.2 billion Las Vegas-style casino in Monticello to Malaysian gaming giant Genting Group, according to the Poughkeepsie Journal.
Genting Group was already the casino’s largest investor, owning 86 percent of the company. It agreed to buy the remaining shares of the casino for $9.74 per share from Empire Resorts. The agreed-upon stock price is about 15 percent above current market value.
Other local media outlets are reporting that the sale will be finalized near the end of the year, at which point the casino will be privately owned and no longer publicly traded. Since its opening, the casino racked up losses of $73.5 million, according to its filing with the Securities and Exchange Commission.
Along with buying up the remaining shares, Genting has decided to increase its latest funding to the casino from $52 million to $77 million.
“With the resources and support of Kien Huat and Genting Malaysia, Empire Resorts will be better positioned financially and operationally, which will help us advance our mission of delivering a winning combination of luxury facilities, quality entertainment and exceptional customer service,” said Ryan Eller, president of Empire Resorts, in a statement.
With its latest acquisition, Genting Group now has 40 casinos in its portfolio, including Resorts World Las Vegas, which is scheduled to open in 2020.