GGRAsia – PH Resorts widens 1Q loss, affirms going concern risk

PH Resorts widens 1Q loss, affirms going concern risk

May 17, 2022 Newsdesk Latest News, Philippines, Top of the deck

The first-quarter net loss attributable to casino resort developer PH Resorts Group Holdings Inc widened year-on-year to PHP109.1 million (US$2.2 million), the firm said in a Tuesday filing to the Philippine Stock Exchange. Such loss had been PHP80.9 million in the first quarter of 2021.

The group affirmed a “going concern” warning, due to its current liabilities as of March 31, exceeding its current assets by PHP8.05 billion.

PH Resorts noted it had “ongoing negotiations” with its lenders for the conversion of a bridge loan to a long-term project loan, “the future availment of an additional long-term loan, and further deferral of 2020 and 2021 principal and interest payments” on the group’s short-term loans with China Banking Corp, and its long-term loan with United Coconut Planters Bank.

The company further observed it had “ongoing negotiations for financing and capital raising transactions with several potential creditors and equity investors,” mentioning a term sheet with Bloomberry Resorts Corp, promoter of Solaire Resort and Casino in the Philippine capital, Manila.

PH Resorts’ parent is Philippine conglomerate Udenna Corp, controlled by local entrepreneur Dennis Uy.

Last week Philippine casino resort operator Bloomberry Resorts said it had signed an initially non-binding agreement to invest in PH Resorts’ unit PH Travel and Leisure Corp. The terms have not yet been disclosed.

PH Travel and Leisure entity Lapulapu Leisure Inc is developing the Emerald Bay Resort Hotel and Casino (pictured in an artist’s rendering) in Cebu.

“Emerald Bay will be constructed in two phases with the first phase expected to be completed in the first quarter of 2023,” the parent reiterated in its Tuesday filing.

PH Travel and Leisure unit Clark Grand Leisure Corp is due to develop the Base Resort Hotel and Casino in Clark, Pampanga on the country’s main island, Luzon.

PH Resorts had said in a separate filing in October that the country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor), had approved a request from Clark Grand Leisure to suspend a provisional gaming licence for Clark.

The group had zero operating revenue in the first quarter.

Regarding its liabilities, the group stated: “These conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern and, therefore, that the group may not be able to realise its assets and discharge its liabilities in the normal course of business.”