Enjoy receives approval from Chilean court to sell key asset
Enjoy has received approval from the Tribunal for the Defence of Free Competition (TDLC) for its second judicial reorganization and debt restructuring process, allowing the sale of the Rinconada Casino.
The FNE had initiated this restriction, which the TDLC approved, to prevent Enjoy from entering contracts or agreements that could lead to a loss of control over the companies that hold the casino permits in Rinconada, Los Ángeles, and San Antonio. These licenses were renewed during the bidding processes in 2020 and 2021, in which the FNE alleges that Enjoy and other competitors (Dreams and Marina del Sol) may have engaged in collusion to avoid competing for the available slots.
Consequently, it requested the TDLC to block Enjoy from selling its casinos. The TDLC agreed and prohibited the company from selling the Rinconada location. This presented a significant issue for Enjoy, as it needed to sell the casino to raise funds and address its financial problems.
However, according to Diario Financiero, after a month and a half of discussions, the tribunal decided to allow Enjoy to proceed with the sale of the Casino Rinconada unit to Holding Casino Rinconada, which is made up of the companies Avla Seguros, WEG Capital, and BTG Pactual, as part of its Judicial Reorganization Agreement.
The Tribunal granted this request but imposed conditions: the new owners of the property (the buyers) must accept that if the Tribunal determines that Enjoy cannot retain the casino, they will surrender it without objection. Additionally, Avla Seguros and WEG Capital are required not to transfer the ownership and/or control of Casino Rinconada without prior authorization from the Tribunal or the Superintendence of Casinos and Gaming (SCJ) and must inform the National Economic Prosecutor’s Office (FNE) 30 working days in advance of any such transaction.
Furthermore, in the event that the authorization for the casino in Rinconada is revoked, Enjoy and the new owners “must assist in executing the measure without opposing it.” They also noted that all these commitments must be documented in a public deed, registered in the statutes of Casino Rinconada, and included in the sales contracts executed by Enjoy. Additionally, the TDLC required Enjoy and the new owners to waive any legal action in advance that would seek to contest the possible revocation of the operating permit.
