Philippine casino developer PH Resorts Group Holdings Inc said in its second-quarter results on Monday “due diligence” was “ongoing” regarding a proposal that another of the country’s casino developers, Bloomberry Resorts Corp, invest in PH Resorts units that are working on schemes for Cebu and Clark respectively.
The filing to the Philippine Stock Exchange noted that as of June 30, PH Resorts’ current liabilities exceeded its current assets by PHP10.66 billion (US$190.7 million). That was a widening from the PHP8.45-billion shortfall recorded as of December 31.
“These conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” noted the filing, a warning also mentioned for the first quarter.
PH Resorts said it had received from Bloomberry Resorts PHP1.0 billion as a “deposit payable” while the talks between the parties continued. Bloomberry Resorts had said in a May filing it had signed as of that time, a non-binding agreement on possible investment.
PH Resorts noted in its Monday quarterly filing that the term sheet was subject to several conditions prior to closing a deal, including “execution of mutually acceptable definitive agreements; approval of regulators; approval of creditors; completion of audited financial statements; corporate approvals; and cooperation on due diligence”.
The method of payment and timing of closing for a deal “are still in the process of being finalised,” said PH Resorts.
PH Resorts’ under-construction Emerald Bay Resort and Casino in Cebu is likely be completed in the first quarter of 2023,” the group had said in its first-quarter results.
In October, PH Resorts had stated the country’s gaming regulator had approved the request of a PH Resorts unit to suspend the provisional gaming licence for a casino in Clark Global City, so that the group could “focus all efforts” on developing Emerald Bay at Mactan in Cebu.
Entrepreneur Dennis Uy’s Udenna Corp, parent of PH Resorts, had said in a statement in late July that it had “settled” what had earlier been described as “certain obligations” of PH Resorts entity Global Gateway Development Corp towards Clark International Airport Corp.
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