Philippines-listed PH Resorts Group Holdings Inc, promoter of a stalled casino project, Emerald Bay (pictured in a file photo), in Cebu, says its ultimate parent, Udenna Corp, “has demonstrated that it has the ability and willingness to support the group in its financial obligations”.
PH Resorts reported a third-quarter net loss of PHP101.3 million (US$1.7 million), and a loss for the calendar year to September 30, of nearly PHP392.9 million. The nine-month figure was an improvement on the PHP2.20-billion loss reported in the prior-year period.
The company reported a deficit of PHP7.22 billion in its operations as of September 30, 2024.
One of its units, Donatela Hotel Panglao Corp, had as of September 30, outstanding loan balances of PHP975 million with Land Bank of the Philippines. The subsidiary is the owner of the Donatela Resort & Sanctuary, a hotel property in Bohol.
Regarding a PHP1-billion deposit made by Philippine casino group Bloomberry Resorts Corp amid now-discontinued talks on possible involvement in the Emerald Bay scheme, PH Resorts said in its third-quarter filing on Friday: “The group received a letter of financial support from its ultimate parent company stating that it shall extend its full and continuing support for PH Resorts with regard to the… PHP1.0 billion deposit from Bloomberry Resorts Corp until such time that the group is in the position to repay this amount without impairing its liquidity position.”
The parties had agreed to settle the PHP1.0-billion deposit “through execution of certain transactions before the end of 2024,” according to PH Resorts.
PH Resorts had also been in discussions on Emerald Bay with Tiger Resort, Leisure & Entertainment Inc (TRLEI), promoter of the Okada Manila casino complex.
On July 1, PH Resorts announced the termination of a term sheet with TRLEI that would have seen the latter invest in the scheme.
PH Resorts reiterated in its latest filing: “Despite termination, this development gave the group an opportunity to engage with other parties which have already expressed their keen interest in the Emerald Bay project, but have been unable to formalise [such interest] due to the restrictions under the TRLEI deal.”
PH Resorts added: “These strategic investor discussions are ongoing with several parties. Due diligence is ongoing and in various stages of completion.”
Following the termination of the term sheet, a non-refundable sum of PHP327.6 million received from TRLEI was reclassified from “advances for future stock subscription”, to “income from non-refundable transaction payments” in PH Resorts’ consolidated income statement for the nine months to September 30.
PH Resorts said in its latest quarterly filing: “The group has ongoing strategic investor discussions with several parties. Due diligence is ongoing and in various stages of completion.”
It added that management believed that “financing and capital raising plans are feasible and will generate sufficient cash flows to enable the group to meet its obligations when they fall due and address the group’s liquidity requirements to support its operations and the completion of its projects.
As such, the consolidated financial statements had been prepared on a “going concern basis of accounting”.
