Suntrust Resort Holdings Inc, a publicly-listed firm in the Philippines, confirmed that its deal to raise up to PHP13.51 billion for the casino hotel at Westside City in Manila now faces a 12-month delay. Initially set to close by April 30, 2024, the transaction will instead wrap up by April 30, 2025, according to a Friday filing.
Back in July 2023, Summit Ascent Investments Ltd—a unit of Hong Kong-listed Summit Ascent Holdings Ltd—agreed to subscribe to convertible bonds issued by Suntrust. However, several key conditions remain unmet. Consequently, Summit Ascent released a separate filing on Tuesday explaining that the delay primarily stems from the pending approvals, consents, and waivers required from the Philippines’ Securities and Exchange Commission (SEC) and other relevant authorities.
Despite Suntrust submitting its application, the SEC has yet to confirm the deal. Based on legal counsel, Summit Ascent now anticipates that the confirmation may take another 12 months.
In its original July 2023 filing, Summit Ascent stated that it offered financial assistance to Suntrust because the company failed to pay interest on convertible bonds issued in 2020 and 2022. This non-payment raised concerns among potential lenders and investors, potentially jeopardizing future funding for the casino project and delaying the hotel’s completion.
On April 22, Suntrust’s board approved a new US$38-million loan from LET Group Holdings Ltd, the parent company of both Summit Ascent and Suntrust. This move aims to address the ongoing funding shortfall while waiting for the bond deal to close.
Meanwhile, Suntrust still targets the first quarter of 2025 to begin operations at its integrated resort and casino hotel. Located in Entertainment City, Westside City will soon join the country’s major casino hubs such as Okada Manila, Solaire, and City of Dreams.
