After the market close on 7 August, GenM announced that it would acquire a 46%-stake in Nasdaq-listed Empire Resorts Inc from its major shareholder at USD128.6 million (or at a price of USD9.74 apiece) (
On 8 August, GenM share price dropped sharply due to concern about this related party transaction. On 9 August, investors began buying into the stock on the hope that GenM would recover after a few quarters down the road.
Yesterday, Empire Resorts share price plunged 12% to close at USD8.18 on news that the company has highlighted to its shareholders that it is contemplating the option of filing for voluntary bankruptcy during the announcement of its result to enable it to easier restructure its borrowings (
To be fair, bankruptcy filings may be a tactical move which savvy investors and companies ...
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