Asian casino operator Summit Ascent Holdings Limited has reportedly extended the maturity date on a $122.5 million loan it agreed with Filipino associate SunTrust Home Developers Incorporated in February.
According to a report from Inside Asian Gaming, both entities are subordinates of Hong Kong-headquartered developer Suncity Group Holdings Limited, which has been endeavoring to construct its envisioned Resorts World Westside City property in metropolitan Manila since 2014. The source detailed that this planned $1 billion gambling-friendly enterprise is due to sit on a 297-acre parcel of land within the capital city’s Entertainment City district and eventually be run by Summit Ascent Holdings Limited.
However, Hong Kong-listed Summit Ascent Holdings Limited reportedly used an official filing to declare that the worsening impact of the coronavirus pandemic in the Philippines had ‘severely hampered the negotiations’ it has been holding with ‘third parties’ potentially interested in helping to finance the Resorts World Westside City project. As such and the operator purportedly explained that it has now agreed to extend the maturity date for its convertible bonds loan with SunTrust Home Developers Incorporated by a further nine months to mid-July of next year.
In concert with this prolongation and Summit Ascent Holdings Limited, which already runs the Tigre De Cristal venue near the Russian city of Vladivostok, reportedly divulged that it intends to subscribe to $127.5 million in additional convertible bonds pending the receipt of required approvals from its shareholders, the Philippine Stock Exchange and Suncity Group Holdings Limited.
Reportedly read the filing from Summit Ascent Holdings Limited…
“During the coronavirus lockdowns in Manila, the construction schedule for the main hotel casino has been badly affected due to the restricted supply of construction materials and labor. Still, construction on the main hotel casino has never been suspended due to the establishment of a ‘safe work bubble’ with vaccination and testing requirements for those working on the project site, which significantly reduces the risk of spreading coronavirus.”
Summit Ascent Holdings Limited reportedly disclosed that it remains confident of being able to secure the funding it will need so as to be able to open the 450-room Resorts World Westside City development in 2023. Nevertheless, it purportedly asserted that it decided to extend the loan it held with SunTrust Home Developers Incorporated in order to ensure all of its current financial obligations can be met.
The filing from Summit Ascent Holdings Limited reportedly read…
“A default of the loan by SunTrust Home Developers Incorporated would severely hinder the development of the main hotel casino, in particular the ability of SunTrust Home Developers Incorporated to secure further financing due to a record of default. The default would also hinder the financial position of Summit Ascent Holdings Limited.”