The Chilean Free Competition Tribunal (TDLC) has requested that Enjoy clarify the obligations and guarantees that the buyers of its casino located in Rinconada de los Andes, known as Enjoy Santiago, will have to assume if its operating permit is revoked.
According to the Chilean media outlet Diario Financiero, the tribunal resolved that Enjoy must provide this information “in a clear, detailed, and precise” manner and within a period of 10 business days.
This comes after the TDLC decreed a precautionary measure that 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 a case of alleged collusion.
In that context, the operator requested the tribunal’s authorization to execute the sale of the Casino Rinconada unit to Holding Casino Rinconada, made up of the companies Avla Seguros, WEG Capital, and BTG Pactual. This is an operation necessary to materialize its Judicial Reorganization Agreement (ARJ).
However, the National Economic Prosecutor’s Office (FNE) —the entity that requested the precautionary measure due to the collusion trial and that seeks to terminate the permits renewed in the investigated bidding processes— has recommended that the TDLC reject Enjoy’s authorization request.
Enjoy Santiago
The FNE argued that “Enjoy’s Authorization Request generates uncertainty and compromises the effectiveness of the corrective measure requested by this FNE, therefore, in the terms proposed, it must be rejected.”
For their part, Enjoy has stated that the FNE presents “an incomplete and biased view of the delicate financial situation” it is going through, “disregarding the only concrete financing alternative that is available to the company.”
In addition, they indicated that “the FNE presents it as something simple for Enjoy to renegotiate its ARJ or obtain alternative financing.” However, they clarified that the materialization of the sale of Rinconada “is essential to realize the only real financing alternative that Enjoy has to avoid its bankruptcy liquidation.”
Finally, they emphasized that Enjoy Santiago “is the main source of income” for the operating company and that “it has been the central and essential element of all of Enjoy’s negotiations with its creditors.”
