Operator News
Chile – Enjoy receives asset offers following January restructuring announcement
By James - 21 March 2024
After Enjoy announced in January that it was going through another restructuring the company has now announced that it is receiving offers for its assets, both in Chile and in Uruguay.
“The Company has received and is currently analyzing expressions of interest and offers for assets (gaming casino operations, hotels, and real estate assets) in Chile as well as in Punta del Este. All of which are non-binding and subject to conditions, including, among others, the completion of due diligence,” stated Enjoy’s CEO, Esteban Rigo-Righi, in a communication to Chile’s Financial Market Commission (CMF).
In the essential fact, the executive detailed that in one of the offers for assets in Chile, “there is an international operator.” This operator, he said, “has indicated interest in the operation of Chile as a single business unit including all its assets.”
The stages to follow in the process, Rigo-Righi pointed out, will be subject to the proposal of an agreement arising from the judicial reorganization process.
In January shares for Latin America’s leading casino operator Enjoy fell after the company announced that it was going through another restructuring. The decision was made “based on the current financial situation of the Company, the expected cash flows for the coming months, and the payment situation towards the Company’s creditors,” the company said at the time. Enjoy outlined a number of reasons for not reaching its growth projections including “liquidity constraints and the slow post-pandemic recovery, which had greater complexities than initially anticipated.” During the years 2020-2021, it had carried out a successful restructuring programme which had allowed it to address the problems in its operation arising from the social unrest and later the Covid-19 pandemic. This procedure ended in 2022 Enjoy said. Shares fell by as much as by as much as sixty per cent on the back of the news.
In February Enjoy announced that the 8th Civil Court of Santiago had initiated the “Judicial Reorganization Procedure.” The announcement meant that Enjoy S.A. would now begin the initial steps of an agreement that would allow it to restructure its liabilities and assets, continue with business development, and fulfil its commitments to creditors, employees, and the communities where it operates, in order to regain its operational normality.
