Cambodian gaming operator, and Hong Kong Stock Exchange-listed company, Century Entertainment is aiming to have a disclaimer over its financial condition removed, as it assures that financial assistance from its Chairman Ng Man Sun can keep the company afloat.
The group, in a Friday filing, notes that its net liabilities ‘would not lead to significantly adverse financial impact to the company’ for its financial year ending March 31st due to Ng not calling for repayment of borrowings totaling HK$56.67 million, and his willingness to provide further financial assistance for the company.
Ng has also provided a ‘personal guarantee’ on borrowings to third parties totaling HK$36.22 million for the same period and holds a convertible bond of HK$50 million.
The group notes that ‘the directors believe that the group will have sufficient working capital to support its operations upon the commencement of the satisfactory operations of the gaming table business.
The group’s new gaming table business in Cambodia (the VSA) is expected to see progress and be issued ‘on or before 31 January 2024’, notes the group.
The new investment relates to eight gaming tables at a new casino which ‘will be assigned’ to a subsidiary ‘for a period of five years’ – initially for a consideration of HK$120 million.
The group also notes that it will negotiate with creditors over a possible debt reconstruction, check on Ng’s willingness to convert his bond into shares and take measures to control costs.
It further notes that ‘there is no urgency for the company to repay the indebtedness […] as they are personally guaranteed by or due to Mr. Ng’ and that the executive ‘is willing to maintain his financial assistance to the group for the purpose of working capital of the group’.
It also notes it will continue to focus on the Cambodian table games business ‘rather than exploring other gaming related business opportunities for the time being’.
