Genting could lose millions in Massachusetts
The company could lose more than US$270 million if the DOI doesn’t approve the construction of a casino in Massachusetts.
US.- A court case could force Genting Malaysia to lose US$274 million if it doesn’t come out as a winner. The company invested in the First Light Resort & Casino that is set to be constructed by the Mashpee Wampanoag tribe, but opponents claim that the Indian Law was misinterpreted.
As The Star Online revealed, the opponents said that the federal government didn’t properly interpret the federal Indian Law to give the Mashpoo Wampanoag tribe the 300 acres of land where the casino is supposed to be built. They’re asking the court to cancel the government’s decision under the basis that it was made under an ungrammatical interpretation of the native law.
Whilst the decision is set to be made on June 19, the casino operator has already altered the activities in the casino resort in order to wait for the final call. “[Genting] invested US$274 million in MW promissory notes that carry interest rates of 12 percent and 18 percent per annum. If the new record-of-decisions (ROD) is unfavorable, we gather that GenM may write off the investment and forego net interest income of US$24.45 million,” said Maybank Investment analyst Yin Shao Yang in a note.
