Imperial Pacific International says its business is still viable despite reporting a loss for the past two years and says its controlling shareholder has pledged to provide finance to settle its liabilities and and potential litigation costs.
The Hong Kong-listed group, which is building a casino on Saipan, said its 2020 loss narrowed to HK$2.85 billion from $3.0 billion, while revenue dropped to $26.5 million from $539.2 million.
It’s in negotiations over its casino license with the Commonwealth Casino Commission and is talking with lenders about extending its debt obligations. The main shareholder, named as Inventive Star, will also settle liabilities to the community benefit fund and capital investments if needed.
IPI won the license to build a $3 billion IR in 2014 and subsequently more than doubled the size of its planned investment to just over $7 billion. Its project raised eyebrows as being unsustainable for the market, while construction of the resort has been plagued by delays and labour problems and more recently lawsuits.
It’s also under investigation by the U.S. federal government and the Financial Crimes Enforcement Network for alleged violations of the Banking Secrecy Act.
Macau's gross gambling revenue in the week to May 23 was up 12 percent from the prior week, but was still 6 percent lower than April, with the lower end tourism market comprising the majority of arrivals, according to Bernstein Research.
Interblock says it’s still seeing challenging times across Asia, with the ongoing travel restrictions forcing jurisdictions to extract as much value as possible from local markets. The company welcomes the Philippines’ lead in allowing local IRs to begin accepting online bets and says this may be a new area of opportunity.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.