According to a filing this week to the Philippine Stock Exchange, the third-quarter net loss attributable to casino resort developer PH Resorts Group Holdings Inc. increased year over year to PHP232.6 million (US$4.0 million). In the previous year’s period, this loss had been PHP200.9 million.
Due to its current liabilities as of September 30 exceeding its current assets by PHP10.77 billion, the group confirmed a “going concern” warning. From the PHP8.45 billion shortfall noted as of December 31, 2021, that was an increase. With regard to the conversion of a bridge loan into a long-term project loan, the future availability of another long-term loan, and the postponement of 2022 principal and interest payments on the group’s short-term loans with China Banking Corp., PH Resorts reported that it was in “ongoing negotiations” with its lenders.
The company also mentioned that it was in “ongoing negotiations for financing and capital raising transactions with several potential creditors and equity investors,” and it specifically mentioned a term sheet with Bloomberry Resorts Corp, the company behind the Solaire Resort and Casino in Manila, the capital of the Philippines.
Regarding the contract with Bloomberry, PH Resorts stated that “due diligence is currently close to completion and certain terms and conditions of the transaction, including the method of payment and timing of closing, are in the process of being finalized.” In Cebu, PH Resorts is building the Emerald Bay Resort Hotel and Casino (shown in the artist’s conception).
The casino resort will be built “in two phases,” with the first “expected to be completed in the first quarter of 2023,” according to PH Resorts’ May statement. The earnings report for Emerald Bay’s third quarter did not include a completion date. The company’s parent company is the Philippine conglomerate Udenna Corp, which is run by local businessman Dennis Uy. Udenna announced in July that it had resolved a US$4 million obligation pertaining to a division of PH Resorts.
Due to the “temporary closure” of its existing Donatela Resort & Sanctuary in Panglao Island, Bohol, “caused by the Covid-19 pandemic,” PH Resorts had no operating revenue in the third quarter of 2022 and the first nine months of 2022. The company is pursuing plans to reopen Donatela by December 2022, according to the statement. “With the continued resumption of both domestic and international flights and the general reopening of the economy,” it said. In comparison to the same period last year, PH Resorts’ net loss increased to PHP549.3 million from PHP376.3 million.