PH Resorts restrictions affecting Emerald Bay sale

PH Resorts Group Holdings Inc, listed in the Philippines, stated that “restrictions” tied to a previous investment deal with Tiger Resort, Leisure and Entertainment Inc. (TRLEI) are hindering the company from formalizing agreements with other potential investors for its stalled Emerald Bay casino resort project in Mactan, Cebu.

In its second-quarter results filed with the Philippine Stock Exchange on Wednesday, PH Resorts highlighted that other interested parties in the Emerald Bay project have been unable to finalize agreements due to these restrictions under the TRLEI deal.

TRLEI, a subsidiary of Japan’s Universal Entertainment Corp, which operates the Okada Manila casino complex in the Philippine capital, had advanced a non-refundable sum of PHP327.6 million to PH Resorts as of June 30. This payment, categorized as “advances for future stock subscription,” would have allowed TRLEI to take majority control of Emerald Bay before talks were called off in early July.

PH Resorts, led by Philippine entrepreneur Dennis Uy, reiterated that discussions with several strategic investors are ongoing, with due diligence in various stages of completion.

The company reduced its first-half net loss year-on-year, reporting a net loss of PHP494.3 million for the six months ending June 30, down from PHP1.08 billion a year earlier. However, its first-half deficit grew by 98.4 percent year-on-year, reaching PHP7.32 billion compared to PHP3.69 billion.

PH Resorts once again highlighted the risk of a “going concern,” noting that as of June 30, the group’s current liabilities exceeded its current assets by PHP12.33 billion, compared to PHP4.15 billion in the first half of 2023. The company reported a negative operating cash flow of PHP97.2 million for the first six months of this year, up from PHP27.0 million in the prior-year period.

Despite these challenges, the company reiterated that it is actively pursuing suitable financing and capital-raising options. This would add more options for Cebu to add more gaming options in the area.

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