Aug 30, 2022 Newsdesk Latest News, Philippines, Rest of Asia, Top of the deck  
LET Group Holdings Ltd, until recently known as Suncity Group Holdings Ltd, said in a Monday filing that it had defaulted on the payment of a promissory note in the principal amount of HKD303 million (US38.6 million), and two groups of convertible bonds with an aggregate value of HKD197 million.
The two default events “have triggered a cross default in respect of another HKD402 million zero coupon convertible bond issued on 8 December 2018 and due on 7 December 2022, and convertible into 1,546,153,846 shares of the company at an initial conversion price of HKD0.26 per conversion share,” stated LET Group.
The company had in July 2020 secured agreement to extend by 24 months, to August 28, 2022, the maturity date on the no-interest convertible bonds and the promissory note.
The instruments had helped the company to acquire a 34-percent indirect stake in the Hoiana casino resort scheme in Vietnam at a total consideration of HKD600 million.
The company confirmed in a separate filing also issued on Monday that it had swung to a previously-flagged HKD387.1-million loss for the six months to June 30, compared to a HKD251.1-million profit for the prior-year period.
LET Group Holdings’ principle business interests include investment, via Manila-listed Suntrust Resort Holdings Inc, in the development and operation of a casino resort at the Westside City Project in the Philippine capital, Manila. That project has a price tag of approximately US$1 billion, and should start operation in 2024.
LET Group Holdings also has interest – via Hong Kong-listed Summit Ascent Holdings Ltd and its units – in a hotel and gaming business at Tigre de Cristal in the Integrated Entertainment Zone of the Primorye Region, near Russia’s Pacific port of Vladivostok.
Looking for solutions
The promissory note and part of the convertible bonds – worth HKD177 million – that remain unpaid by LET Group had been originally issued by the company in favour of Star Hope Ltd, a company wholly-owned by Alvin Chau Cheok Wa, the former chairman, executive director and controlling shareholder of then Suncity Group Holdings.
Mr Chau, founder of the privately-held Macau junket brand Suncity Group, is currently in detention in Macau, awaiting an anticipated September start of his trial on charges of illegal gaming, criminal association, fraud, and money laundering.
The note and bonds were subsequently bought in May by Major Success Group Ltd, a company wholly-owned by Andrew Lo Kai Bong, a senior executive at then Suncity Group Holdings.
The acquisition coincided with Mr Lo acquiring controlling shares in then Suncity Group Holdings.
The rest of the unpaid convertible bonds had been issued on behalf of Mr Lo via a separate company called Better Linkage Ltd. They were also acquired in May by Major Success.
As of Monday, Major Success had not issued any waiver regarding the defaults on payment.
“The company’s board of directors and other members of its senior management are reviewing the current situation and [the board] is considering a range of solutions to address it,” LET Group said. That included potential extensions of the repayments respectively of the promissory notes and convertible bonds, “and/or waiver from Major Success”.
LET Group added it was also “exploring a range of other solutions, such as refinancing or assets disposal.” It did not provide additional detail.
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