Macau Legend has stated it has secured agreements with its lenders to restructure its debt, in a dispatch issued to clarify its auditors regarding the company’s ability to continue.
In a statement, the company said its Audit Committee agreed with management’s view that it was appropriate to prepare the 2024 financial statements on a going concern basis.
Macau Legend has reported a significant increase in loss for 2024, totaling HK$667.23 million ($85.78 million), causing concerns about its financial sustainability.
The group operates two hotels in Macau, the Legend Palace Hotel and the Harbourview Hotel. It will continue operating the Legend Palace Casino until the end of the year, after which its management contract with concession-holder SJM finishes.
An auditor’s disclaimer had raised concerns over uncertainties relating to the company’s high level of short-term debt.
As of the end of 2024, Macau Legend reported HK$2.07 billion ($265.41 million) in bank borrowings and HK$339.4 million ($43.57 million) in shareholder loans either due within 12 months or repayable on demand, despite holding HK$52.3 million ($6.68 million) in cash and bank balances.
To counter these concerns, the company issued three main arguments: it is not in liquidation or facing any winding-up petitions; operations continued throughout 2024 and into 2025; and the financial statements reflect a strengthening performance, including a 65.1 percent year-on-year improvement in adjusted EBITDA to HK$159.8 million ($20.41 million).
Macau Legend also highlighted it has secured agreements with its lenders to restructure its debt.
This includes deferring repayment of an HK$85.5 million ($10.94 million) loan to October 2026. In addition, a broader facility restructuring agreement covering around HK$2 billion ($255.17 million) in other bank loans was signed on June 3rd, 2025.
Under the new terms, the company will repay HK$1 million ($127,000) per month over 19 months starting February 2025, with deferred repayments due in 2025 now scheduled for September 2026, and the remaining principal to be fully repaid by September 2027.
The agreement also includes supervisory terms to strengthen liquidity oversight. Further negotiations with the banks are expected by April 2026 to finalise a long-term solution, factoring in upcoming changes to Macau’s gaming laws, set to take effect in January 2026.
Meanwhile, a major shareholder—who is owed HK$205 million ($26.22 million), or 60.4 percent of total current shareholder loans—provided a written commitment in April 2025 not to demand repayment until the company is financially able.
The shareholder also pledged to offer additional financial support if necessary to ensure sufficient working capital through March 31st, 2026.
The company’s Audit Committee stressed that the remedial measures are still evolving and require more time to fully demonstrate their effectiveness, and concluded that there was no justification for using a liquidation or realisation accounting basis under the current circumstances.
Macau Legend added that it will continue discussions with its auditors with the aim of having the disclaimer lifted or replaced.
