Enjoy Seeks Approval to Sell Casino Amid Reorganization Efforts
Enjoy, a gaming operator in Latin America, has requested authorization from the Tribunal de Defensa de la Libre Competencia (TDLC), Chile’s antitrust court, to sell its casino located in Rinconada de los Andes, known as Enjoy Santiago. This move is aimed at fulfilling its second judicial reorganization process and, consequently, avoiding liquidation.
In mid-December, the TDLC approved a precautionary measure requested by the Fiscalía Nacional Económica (FNE), Chile’s National Economic Prosecutor’s Office, which prevents Enjoy from selling its assets of Casino Rinconada S.A., Casino Gran Los Ángeles S.A., and Casino de Juegos del Pacífico S.A., due to an alleged collusion case.
This decision impacts Enjoy’s judicial reorganization process, which includes the sale of its asset in Rinconada de los Andes to Avla, WEG Capital, and Banco BTG Pactual. The sale had been previously approved by the FNE.
According to reports, Enjoy has requested the TDLC to allow it to “execute all those acts, contracts, and agreements regarding the shares, rights, and prerogatives it has over Casino Rinconada, which are necessary to materialize the operation.”
They added that this should be allowed “under the essential condition that—before its materialization—the third parties that acquire control of Casino Rinconada commit to fully respect and abide by the eventual and improbable corrective sanction consisting of the declaration of early termination of the gaming casino operation permit assigned to Casino Rinconada, requested by the FNE; and not to enter into acts, contracts, or agreements that result in a transfer of control of Casino Rinconada to another third party, unless said sub-acquiring third party commits, in advance, in the same terms.”
In other words, Enjoy is requesting that the sale of the assets be carried out, provided that the buyers or “third parties” assume the risk of losing the operating permit of said casino.
Furthermore, the third parties acquiring control of Casino Rinconada have reportedly expressed to Enjoy their intention to be bound by the terms mentioned above. Avla, WEG, and BTG are allegedly willing to assume the risk of Casino Enjoy Santiago losing its operating license.
Given this context, Enjoy warned that non-compliance with this obligation—and, consequently, with the Judicial Reorganization Agreement—”generates the imminent, serious, grave, and unavoidable risk that Enjoy will enter into bankruptcy liquidation.”
In that case, they stated that its bankruptcy liquidation “will generate harmful social effects,” such as the loss of approximately 4,690 jobs in the short term and the elimination of a competitor in the casino industry.
Finally, Enjoy emphasized that in the “very improbable case” of being found guilty of collusion, the precautionary measure seriously jeopardizes the other sanctions sought by the FNE, since if the company is liquidated, there would be no one to punish or fine.
Stay ahead of the curve in the fast-paced online casino world – explore the latest updates and trends at listofallcasinos.com.
