More woes for Enjoy as move to sell assets blocked by Chilean regulator

Enjoy has submitted a request for reconsideration to challenge the resolution of the Tribunal for the Defence of Free Competition which upheld the measure sought by the National Economic Prosecutor’s Office (FNE ) to block the sale of assets by the operator.

The antitrust agency 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.

In its filing, Enjoy argues that this measure could jeopardize its Judicial Reorganization Agreement potentially pushing the company toward bankruptcy liquidation. The agreement requires Enjoy to sell and transfer its shares in the parent company of the Rinconada casino, as well as other establishments, to its creditors. “Enjoy must also sell all Series B shares issued by NewCo 2 (currently referred to as Casinos de Chile SpA) to certain creditors, which represent 0.22% of its capital,” the document notes.

However the company argues that this corporate restructuring is essential for them to “secure the full Working Capital Financing and Issuer Financing Commitment which are necessary to sustain operations and make payments to creditors.” Enjoy also warns that a potential liquidation would hinder its ability “to settle any fines and/or damages” should it be found guilty of collusion. The company argues that this situation could lead to the loss of over 4,500 jobs in the short term and result in the halt of tax payments in the municipalities where it operates.

The (FNE) has already approved the sale of six of Enjoy’s main casinos by its creditors Avla Seguros S.A, WEG Capital SpA, and Banco BTG Pactual, as part of the second judicial reorganization process for the gaming operator. According to the Chilean newspaper La Tercera, the notification of the operation by the involved parties was made on November 22, 2024, after the 8th Civil Court of Santiago approved the proposed judicial reorganization agreement for Enjoy, aimed at ensuring operational continuity for these subsidiaries.

​Enjoy has submitted a request for reconsideration to challenge the resolution of the Tribunal for the Defence of Free Competition which upheld the measure sought by the National Economic Prosecutor’s Office (FNE ) to block the sale of assets by the operator. The antitrust agency initiated this restriction, which the TDLC approved, to prevent Enjoy…