The deal to raise up to PHP13.51 billion for a casino hotel project at Westside City in Manila has been delayed by 12 months, now set to close by April 30, 2025. Suntrust Resort Holdings Inc, a Philippines-listed promoter of the Westside City casino hotel, confirmed the new date in a Friday filing.
In July 2023, Summit Ascent Investments Ltd, a unit of Hong Kong-listed Summit Ascent Holdings Ltd, agreed to subscribe to convertible bonds worth up to PHP13.51 billion to be issued by Suntrust, with an initial long stop date of April 30 this year.
On Tuesday, Summit Ascent issued its own filing regarding the delay, stating that some conditions for completing the deal remained unmet, including obtaining necessary consent, approval, and waiver from the Philippines’ Securities Exchange Commission (SEC) and other relevant authorities.
Summit Ascent noted that the SEC confirmation is yet to be forthcoming despite Suntrust’s application and based on legal advice, estimated an additional 12 months to secure the SEC confirmation.
In its July 2023 filing, Summit Ascent Holdings explained that the financial assistance to Suntrust was due to Suntrust’s failure to pay interest on a 2020 and a 2022 convertible bond, which might deter other lenders or investors from funding the remaining capital expenditure for the casino hotel’s development, potentially delaying its completion and opening.
On April 22 this year, Suntrust’s board approved a US$38-million loan from LET Group Holdings Ltd, the parent company of both Summit Ascent and Suntrust.
Westside City will the next integrated resort to open in Entertainment City. Suntrust plans to start operations at its casino hotel in the first quarter of 2025, according to a recent announcement.