Bali's Chicago Reports 12.7% Growth In Sales For March 2024 To Bid To Acquire Bali's Mulls, Inc

The business flow continues to grow in the interim establishment of Chicago-based Vallis Corporation, following a takeover bid by its largest shareholder, an $800 million funding gap to build a planned Chicago casino, a $1.7 billion project and a downgrade of its credit rating agency.

Casino Temporary Earnings Data:

Revenue at the Medina Temple Temporary Casino exceeded $11.1 million in adjusted gross income, up 12.7% last month, according to data provided by the Illinois Gaming Commission on April 11. In addition, Chicago in Bali ranked fourth in terms of revenue among 15 casinos in Illinois.

Admission to the casino increased 11.6% to nearly 118,000 visitors, meaning it came in second place. At No. 1 is Rivers Casino Des Plaines, the highest-grossing and busiest casino in the U.S.

The temporary facility attracted more than 271,000 visitors last month and reaped an adjusted gross profit of nearly $47.8 million. For the 124th quarter, it reaped an adjusted gross profit of nearly $30.3 million and more than $3 million in domestic tax revenue.

However, while impressive, current profits fell short of the profit targets Chicago set for Bali's first casino. As for profit targets, the city expected the casino to raise $35 million in domestic gaming taxes and $243 million in adjusted gross income in 2024.

In response, Su Kim, chairman of Bali and a founding ally of New York hedge fund Standard General, the largest shareholder, said: "We continue to build month-on-month momentum and we expect it to continue in the future."

$800 million in financing gap:

The business flow of the temporary casino, which officially opened in September and is located along the North River, is now solid, raising questions about what the ambitious will is to build a representative permanent casino in Chicago as well.

In a related development, Vallis told the Nevada Gaming Control Board in February that the company would have to undergo an $800 million financing gap to fill the remaining $1.1 billion in costs for building hotels, casinos and entertainment facilities in the 30-acre Chicago Tribune River West Publishing Area.

In response, Mark Wong, Bali's Chicago general manager and vice president, said in an April 11 press release, "We are proud to provide a great experience for our guests at the Medina Temple and look forward to this summer when construction begins at our global entertainment complex along the Chicago River."

In addition, the company is expected to officially open a permanent casino location in 2026.

Credit rating downgrade:

According to the Chicago Tribune, Moody's and Fitch recently downgraded Vallis' credit rating due to concerns that a permanent casino in Chicago would result in financial stability and higher leverage.

In March, Standard General submitted a bid to buy the rest of its shareholders at a price of $15 per share, which the company estimated was around $648 million. But the offer is 40% lower than the offer the investment bank had sought to pay to buy the company in 2022. Standard General currently holds 23% of Bali's issued shares.

Bali Entertainment's board of directors set up a special committee in March and decided to keep Macquarie Capital as a financial consultant to evaluate bids and inspect viable alternatives to Standard General's bids. On April 11, Kim also declined to comment on the takeover offer.

In addition, K&F Growth Capital, a small investor who owns less than 1% of Bali, gave its opinion in a letter to the company's board in early April this year to dismiss the bid, which it said was a "tremendously undervalued proposition." But it also recommended Bali "offload or de-risk the Chicago project" by bringing an alliance to the site to build and manage a permanent casino.

In response, Dan Fetters, a co-management partner at California-based K&F, said in an email on April 11 that "we are still sticking to the plans outlined in the letter." 파워볼사이트

Nevertheless, Valie's shares closed on April 11, with a current price of $13.60 per share and a market cap of $545 million.