The casino operator seeks to comply with its judicial reorganization agreement and face a precautionary measure that threatens to hinder its process.
Chile.- Enjoy took a crucial step in its judicial reorganization process by requesting the Free Competition Defense Court (TDLC) authorization to sell its Casino Rinconada unit. This sale is part of a judicial reorganization agreement necessary to restructure its liabilities, but it is being hindered by a precautionary measure that prohibits the sale of key assets, including the said casino.
On December 31, the National Economic Prosecutor's Office (FNE) approved the operation involving the sale of the unit to the companies Avla Seguros, WEG Capital, and Banco BTG Pactual, but the precautionary measure issued by the TDLC prevents it from being finalized until an investigation into possible collusion is resolved. In this context, as reported by the local media Diario Financiero, Enjoy has requested the Court to allow the sale under the condition that the buyers assume the risk of losing the casino's operating license, a crucial asset for the viability of the business.
From the company, it was stated: "The third parties that will acquire control of Casino Rinconada have already expressed to Enjoy their intention to commit under the terms previously mentioned." Thus, Avla, WEG, and BTG would be willing to assume the risk that the Rinconada Casino loses the license that allows it to operate.
The company has emphasized that the sale is essential to avoid its bankruptcy liquidation, a scenario that could generate devastating consequences, such as the loss of about 4,700 jobs and the disappearance of a competitor in the casino industry.
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Furthermore, Enjoy warned that the liquidation would endanger the sanctions that the FNE seeks to impose in the case of a possible conviction for collusion, as there would be no operational entity to punish.
