Chinese real estate developer and operator New Silkroad Culturaltainment Limited has reportedly announced that its controlling shareholder has agreed to draw down $38.6 million of a syndicated loan it holds with the firm worth just over $74.2 million.

According to a report from GGRAsia, the deal will see Macrolink Culturaltainment Development Company Limited pledge and deposit 36.72% of the issued share capital in Hong Kong-listed New Silkroad Culturaltainment Limited in hopes of grossing around $189.3 million in the future.

New Silkroad Culturaltainment Limited is reportedly set to issue not less than 916,454,764 shares at the subscription price of $0.20 each on the basis of two new stocks for every five shares held in the company as of December 14.

GGRAsia reported that New Silkroad Culturaltainment Limited had total borrowing of $85 million as of the end of August of which 87.3% was due to Shenzhen-listed Macrolink Culturaltainment Development Company Limited and its subsidiaries.

New Silkroad Culturaltainment Limited reportedly declared that the open offer would allow it to “reduce its finance costs, lower its debt level and strengthen its financial position” in order to provide funding for its MegaLuck Company Limited subsidiary “to develop its casino business in Jeju, [South] Korea”.

“The company has been notified by Macrolink [Culturaltainment Development Company Limited] that on December 16, 2016, the first draw down in the amount of $38.6 million has been made by Macrolink [Culturaltainment Development Company Limited] pursuant to the finance documents,” read a statement from Paul Ng Kwong Chue, Executive Director for New Silkroad Culturaltainment Limited.

GGRAsia moreover reported that a unit of casino operator Melco International Development Limited, which is controlled by Hong Kong businessman Lawrence Ho Yau Lung, is providing consultancy services to the new South Korean casino being developed by New Silkroad Culturaltainment Limited.

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