Last Friday, the Hotel and Casino Chain Enjoy announced that the company’s board agreed to the start of a “Judicial Reorganization Procedure” in the face of the delicate financial situation that goes through after the social outburst and expansion of Covid-19.
The company reported that after the negative effects of the social outburst and then the expansion of Covid-19 on its operations, it was forced to indefinitely close the facilities of the three countries where it operates: Chile, Argentina and Uruguay.
Today, according to El Mercurio, the casino firm linked to the Advent fund and the Martinez family asked the Superintendency of Casinos de Juego (SCJ) to terminate early the operating permits of the municipal casinos of Coquimbo, Viña del Mar, Pucón and Puerto Varas. Operations in these four cities, Enjoy were awarded in 2018 and would take effect between October of this year and July 2021.
According to the morning, the application was submitted on April 17 to the auditing body, where the company refers to fortuitous or force majeure reasons that make it impossible for it to comply with the projects committed in the tender. To this end, it proposes three alternatives.
First, if your application is accepted, the permits are relicensed. Second, an extension of the current gaming casino licences, the deadlines for starting project operations and the bidding processes that are to be initiated for a period of five years. And third, may the superintendency authorize an additional extension of at least three years for the start of the elections of the four municipal casinos, a period that Enjoy considers to be the “minimum term” to recover.
Enjoy offered the municipalities of the four municipalities fixed annual contributions, which together amount to about $53.4 million, which the company will have to realize when the licenses take effect.