PH Resorts Group Holdings Inc has announced a business plan aimed at resolving its “negative equity position” by the end of 2025, as per a Monday filing to the Philippine Stock Exchange.
Philippine-listed PH Resorts has a provisional casino licence for the Emerald Bay Resort and Casino project (pictured) in Mactan, Cebu, a scheme currently stalled. The company is a unit of Udenna Corp, controlled by Philippine entrepreneur Dennis Uy.
PH Resorts said it plans to issue the equity via the conversion of nearly PHP4.09 billion (US$72.2 million) in deposits and advances for future stock subscription to the firm’s common stock by its parent.
It’s anticipated the exercise will be finalised by the fourth quarter of 2025, stated the firm.
PH Resorts flagged in its first-quarter 2025 report a negative equity position of PHP503.7 million as of March 31, 2025.
“As the company’s projects are in the development phase, construction spending and pre-operation costs typically results in cumulative net losses over prior periods,” it stated.
The company said historically it “has had sufficient equity in excess” of the losses recorded over the years, but construction development expenses combined with other factors led to the group’s negative equity position.
Such factors included: a capital infusion from stockholders – amounting to PHP4.21 billion as of March 31 – booked as liabilities, due to insufficient authorised capital stock; a financing transaction with the SM Group-backed China Banking Corp (Chinabank); pre-operating costs linked with Emerald Bay; and a negative equity reserve associated a previous acquisition.
According to PH Resorts, the company has worked towards an increase of its authorised capital stock from PHP8.00 billion to PHP15.0 billion, which was previously approved by its board of directors and shareholders.
“The application for increase will be presented for reapproval by the stockholders during the upcoming 2025 annual stockholders’ meeting to be held on 17 July 2025,” stated the company in Monday’s filing.
That is because the country’s Securities and Exchange Commission “requires that the application for increase is filed within six months from stockholders’ approval”.
“Once the application is approved, PHP3.37 billion of advances for future stock subscription and PHP718.0 million of deposits for future stock subscription will be converted to equity, and, thus, the pro-forma equity as of March 31, 2025 would be positive PHP2.86 billion,” said PH Resorts.
