Udenna Group’s subsidiary for the gaming and hospitality industry, PH Resorts Group, is planning to continue the development of its new integrated resort project, which will be situated in Cebu.
Negotiations with potential investors continue:
The negotiations with potential investors continued, and many of them are interested in collaborating with the company on this major project.
The negotiations with lenders are also in progress since the company would like to make some changes when it comes to the current loans. PH Resorts Group states that it has the support of its parent company to ensure the long-term viability of the company.
On Wednesday, part of the company’s 2022 Annual Report was published. The announcement followed the termination of the proposed investment that was supposed to be made by Manila’s Solaire Resort: Entertainment City, Bloomberry Resorts. Bloomberry Resorts was supposed to acquire a part of the PH Resorts Group’s new casino, The Emerald Bay, as well as the casino whose building has also been on hold, Clark’s The Base Resort Hotel and Casino.
After that termination, PH Resorts Group started negotiating with other interested parties. However, it’s still unknown which companies might be included in the negotiations.
The first phase of the construction of The Emerald Bay was supposed to be completed last year. However, the COVID pandemic caused the project to stop moving forward back then.
Phase 1 is supposed to feature 122 gaming tables, as well as 600 electronic gaming machines (EGM). There would also be 270 hotel rooms for the guests who want to stay the night at the hotel.
The company had significant losses in the last two years. After the loss of Php 153.0 million (US$14.5 million) in 2021, even 2022 wasn’t better. The company lost Php801.9 million (US$14.5 million) last year, and the company’s auditor commented that “a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.”
Land Bank of the Philippines and PH Resorts Group negotiate the terms of the company’s principal and interest payments. The company also tries to discuss the terms of the loan with China Banking Corporation (CBC) to extend the Advance Maturity Date from April 30, 2023, to June 30, 2024.
Udenna Group will financially support its subsidiary. It will allow PH Resorts Group to return the deposit of Php 1 billion (US$18.1 million) to Bloomberry later when the company achieves a stable liquidity position.
The company commented: “Management believes that considering the progress of the steps undertaken to date, these financing and capital raising plans are feasible and will generate sufficient cash flows to enable the Group to meet its obligations when they fall due and address the Group’s liquidity requirements to support its operations and the completion of its projects.”