Suntrust agrees to US$6mln loan from chairman Andrew Lo

May 29, 2023 Newsdesk Latest News, Philippines, Top of the deck  

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Suntrust Resort Holdings Inc, the developer of a casino scheme in the Philippines’ capital Manila, says its board has agreed to a US$6-million loan from a related party controlled by company chairman Andrew Lo Kai Bong.

Philippine-listed Suntrust said in a filing on Friday that its board of directors had “approved the proposed loan transaction amounting to US$6 million between the company and a related party, Major Success Group Ltd”.

No financial details of the agreement were disclosed. Suntrust did not say how it would use the loan.

Major Success Group is a British Virgin Islands firm whose shares are wholly controlled by Mr Lo. The firm is the majority shareholder of Hong Kong-listed LET Group Holdings Ltd, previously known as Suncity Group Holdings Ltd.

Suntrust Resort is controlled by LET Group. Mr Lo is also the latter’s chairman.

Last month, the parent said it was seeking financing to complete the development of the casino hotel being developed by Suntrust. At the time, the firm stated it was proposing to seek financing for the project (pictured in an artist’s rendering) from a local financial institution through Suntrust.

Suntrust said earlier this month that construction work for its casino hotel in Manila had reached level 10 as of the end of the first quarter. The firm also reaffirmed a plan to launch operations in 2024.

The complex is part of the Westside City project. It is to feature 460 five-star rooms, and a casino establishment that “would cater to both mass and VIP markets,” according to information previously disclosed by the firm. The project had been described as having a price tag of approximately US$1 billion.

Suntrust had first-quarter net income amounting to PHP92.6 million (US$1.7 million), compared with a PHP194.3-million loss in the prior-year period, it stated in its latest earnings filing.

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