Chile’s Casino Operators Receives Coronavirus Relief From Creditors, Investors

chile casino operators relief
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The onslaught of the novel coronavirus spared no country on the planet. Millions of lives were lost, and businesses suffered massive losses in revenue. The deadly virus infected more than 22 million people and stole more than 800,000 lives.

The gambling industry is among the industries which suffered the biggest losses. The casinos shut down operations in mid-March because of the government imposed lockdowns. Many casinos remained closed for months affecting the revenue of the casinos. Many employees lost their jobs because there were no casino guests.

People were forced to stay in their homes as they fear for their lives and their family. The casino industry relies on tourism. The massive decline in tourism dragged down related sectors. The casinos were unable to recover despite loosened government restrictions.

Losses in the gambling industry

The casino industry of many countries reported millions of losses. Casinos in the world’s largest gambling hub, Macau, hoped to recover from the millions of losses they accumulated because of the travel restrictions imposed by China to Macau. This month, the restrictions were lifted, and the tourist visas were resumed. However, the casinos remained pessimistic because fewer people went back to gambling venues.

Casinos in Latin America suffered the same fate as the other markets. The casinos in the region continued losing millions because of the continuing spread of the novel coronavirus pandemic. Online gambling is posed as the biggest competitor for land-based casinos. Many believe that online casinos will surpass the traditional casinos as more and more people are attracted to mobile entertainment.

Online gambling is gaining popularity in Latin America, and many countries see the contribution of the industry to economic growth. The casinos in Latin American nations, such as Chile, struggle to survive as the pandemic continues.

Aid for Casinos in Chile

Chile’s casino industry is expecting many changes as companies work to survive and expand amidst the pandemic. Enjoy and Sun Dreams, the two largest casinos in the country, considered every possibility to recover from the novel coronavirus’s impact. The companies made arrangements with investors and creditors as they continue the operations of their gambling facilities.

The securities filing of the Santiago-based Enjoy revealed that creditors are ready to provide $73.3 million through a debt restructuring plan. International bondholders will provide $11.97 million, while local investors will contribute $61.4 million.

The funding will provide the company time to create and approve a debt restructuring agreement. The majority of the funds, $63.7 million, will be used for a bridge loan that will ease the company’s troubles. The company filed for bankruptcy in April after its properties in Chile, Argentina, and Uruguay shutdown.

The South Africa-based company, Sun International, searched for buyers of its stakes in recent months before signing deals with Pacifico Sur and the Chilean casino operator, Marina Sol. The company suffered massive losses when its properties in Argentina, Chile, Colombia, Panama, and Peru shut down. Pacifico Sur supported Sun Dreams in facing the challenges in its operations.

Pacifico Sur has a strong financial standing that can help its partner company.

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