PH Resorts Group Holdings Inc., a publicly listed firm in the Philippines, confirmed that existing restrictions from a past investment agreement with Tiger Resort, Leisure and Entertainment Inc. (TRLEI) currently prevent the company from finalizing deals with new potential investors for its stalled Emerald Bay casino resort in Mactan, Cebu.
In its second-quarter disclosure to the Philippine Stock Exchange on Wednesday, PH Resorts emphasized that several interested parties have expressed willingness to invest in the Emerald Bay project. However, none of them can move forward due to legal constraints tied to the terminated TRLEI agreement.
TRLEI, a subsidiary of Japan’s Universal Entertainment Corp. and operator of Okada Manila, had already advanced PHP327.6 million to PH Resorts as of June 30. The sum was categorized as “advances for future stock subscription.” If finalized, this would have granted TRLEI majority control of Emerald Bay. Nevertheless, both parties called off the talks in early July.
Despite the failed agreement, PH Resorts stated that it remains in discussions with multiple strategic investors. These talks remain active, with due diligence currently underway at varying stages of completion.
PH Resorts, led by businessman Dennis Uy, also reported improvements in its financials. The company reduced its first-half net loss to PHP494.3 million for the six months ending June 30. This marked a major decrease from the PHP1.08 billion loss posted during the same period last year.
At the same time, the company’s total deficit grew significantly. PH Resorts disclosed a first-half comprehensive loss of PHP7.32 billion, up 98.4% from PHP3.69 billion in the prior year.
Once again, the company raised concerns about its “going concern” status. As of June 30, PH Resorts’ current liabilities exceeded its current assets by PHP12.33 billion. This gap widened compared to the PHP4.15 billion recorded during the same period in 2023.
Moreover, PH Resorts reported a negative operating cash flow of PHP97.2 million for the first six months of 2024. That figure more than tripled compared to PHP27.0 million from the year before.
Even with these challenges, the company stressed that it continues to actively seek funding. PH Resorts said it remains committed to pursuing viable financing and capital-raising efforts. These efforts, if successful, could eventually help restart construction and bring additional gaming options to the Cebu market.
