PH Resorts widens 3Q loss, says Bloomberry backing close

Nov 16, 2022 Newsdesk Latest News, Philippines, Top of the deck  

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The third-quarter net loss attributable to casino resort developer PH Resorts Group Holdings Inc widened year-on-year to PHP232.6 million (US$4.0 million), the firm said in a filing this week to the Philippine Stock Exchange. Such loss had been PHP200.9 million in the prior-year period.

The group affirmed a “going concern” warning, due to its current liabilities as of September 30, exceeding its current assets by PHP10.77 billion. That was a widening from the PHP8.45-billion shortfall recorded as of December 31, 2021.

PH Resorts noted it had “ongoing negotiations” with its lenders for the conversion of a bridge loan to a long-term project loan, as well as “the future availment of an additional long-term loan; and deferral of 2022 principal and interest payments” on the group’s short-term loans with China Banking Corp.

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.

“Due diligence is currently nearing completion and certain terms and conditions of the transaction, including the method of payment and timing of closing, are in the process of being finalised,” stated PH Resorts in relation to the agreement with Bloomberry.

PH Resorts is developing the Emerald Bay Resort Hotel and Casino (pictured in an artist’s rendering) in Cebu.

PH Resorts said in May the casino resort was to be developed “in two phases”, with the first “expected to be completed in the first quarter of 2023”. No completion date for Emerald Bay was mentioned in its third-quarter earnings statement.

The firm’s parent is Philippine conglomerate Udenna Corp, controlled by local entrepreneur Dennis Uy. In July, Udenna said it had settled a US$4-million obligation related to a unit of PH Resorts.

PH Resorts had zero operating revenue in the third quarter, as well as in the first nine months of 2022, given the “temporary closure” of its existing Donatela Resort & Sanctuary in Panglao Island, Bohol, “caused by the Covid-19 pandemic”.

“With the continuing resumption of both domestic and international flights and the general reopening of the economy, the company is pursuing plans to reopen Donatela by December 2022,” it stated.

PH Resorts’ net loss for the year to September widened to PHP549.3 million, compared to PHP376.3 million in the prior-year period.

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