Emperor International Holdings Ltd., the real estate-focused sister company of Macau satellite casino operator Emperor Entertainment, reported HK$16.6 billion ($2.1 billion) in overdue bank loans as of March 31st and announced it is in discussions with banks regarding a restructuring plan.
The company also disclosed breaches of certain loan agreement terms, warning that banks may demand immediate repayment of outstanding borrowings.
The debt crisis sent Emperor International’s shares plunging 11.8 percent in Hong Kong trading on Monday, marking the stock’s biggest single-day decline since October 2024. The shares, which trade at penny stock levels, suffered the steepest fall this year following the Friday filing to the Hong Kong Stock Exchange. Emperor Entertainment shares also appeared to be affected indirectly, dropping 5.26 percent on Monday.
Emperor International reported a widening annual loss of HK$4.7 billion for the year ending March 31st, highlighting the company’s deteriorating financial position. The overdue debt represents a significant portion of the company’s obligations and has raised concerns about potential banking sector impacts, as financial institutions may tighten credit lines and demand loan repayments.
Meanwhile, Emperor Entertainment, which operates Macau’s Grand Emperor Hotel casino, reported an annual loss of nearly HK$188.9 million ($24.1 million) attributable to owners. The Grand Emperor Hotel casino is among the satellite casinos scheduled to cease operations by year-end, following regulatory changes in Macau’s gaming sector.
Emperor Entertainment’s shares slumped nearly 20 percent following the announcement of the Grand Emperor Hotel casino closure.
