Philippine-based Suntrust Resort Holdings Inc, the developer of a casino hotel scheme at Westside City in the Philippine capital Manila, says there is currently not “sufficient information available” on whether the sale of the Tigre de Cristal licensee – involving two of its associate firms – will “have a direct effect” on Suntrust’s business.
Summit Ascent Holdings Ltd, which has been a long-standing investor in Russian casino resort Tigre de Cristal (pictured), declared itself non-compliant with Hong Kong Stock Exchange listing rules after all but one of the company’s six directors resigned with effect from January 15.
The reason given was their “disapproval” of a deal that Summit Ascent confirmed involved a majority-owned subsidiary selling, for US$116 million, G1 Entertainment LLC, the gaming licence holder of Tigre de Cristal. Summit Ascent cited “uncertainties” arising from the “ongoing Russia-Ukraine conflict”
Currently, only regional casino investor Andrew Lo Kai Bong is a director, as well as chairman, of Summit Ascent.
Mr Lo is also chairman and a director of Summit Ascent’s Hong Kong-listed parent LET Group Holdings Ltd.
LET Group confirmed in its own filing that all its board members other than Mr Lo had resigned due to disapproval of the sale of the Tigre de Cristal licensee.
In its Friday filing, Suntrust stated the company’s management “will be in a better position to assess the impact, if any, of the sale” involving its associates, “after more information is made available”.
LET Group controls, via a subsidiary, 51 percent of Suntrust.
A unit of Summit Holdings, Summit Ascent Investments Ltd, holds PHP5.60 billion (US$99.7 million) of Suntrust’s convertible bonds, issued in 2020, as well as PHP6.40 billion of Suntrust’s convertible bonds issued in 2022.
In 2023, Suntrust and Summit Investments agreed that Summit Investments would subscribe for a convertible bond to be issued by Suntrust in the aggregate amount of up to PHP13.51 billion, the proceeds of which shall be set off against Suntrust’s outstanding obligations under the convertible bonds issued in 2020 and 2022.
The PHP13.5-billion convertible bond “has yet to be issued,” according to Friday’s filing.
