Macau Legend tries to sell Hengqin Legend Ponto Square as 1H25 loss mounts to $182M ahead of satellite casino closure

Satellite casino operator Macau Legend has reported a loss of HK$1.42 billion ($182.32 million) for the first half of the year, primarily due to the upcoming closure of its casino operations in the SAR.

The loss was in line with expectations announced at the end of August but is still a 1,192 percent increase compared to 1H24.

The group is now working to change its strategy to survive the closure of its Legend Palace Casino by December 31^st, hoping to generate more revenue from its non-gaming operations at Macau Fisherman’s Wharf and raise more funds.

Given that the banks that have issued loans to Macau Legend could demand immediate repayment on these loans, the group has classified its bank borrowings totaling HK$2.05 billion ($263.93 million) as ‘current liabilities’ as of the end of June.

While the group has applied for a waiver on non-compliance loan covenants from the banks, it has not yet received it, but it also indicates that it hasn’t received any demand for immediate repayment of the borrowings.

Macau Legend has already defaulted on a HK$85.5 million ($10.97 million) outstanding loan but was granted until October 2026 to repay it. It has also been granted an extension on its repayment of a HK$2 billion ($256.67 million) outstanding bank loan and has been required to pay HK$1 million ($128K) for 19 consecutive months (from February 2025 to August 2026) with outstanding installments of loan principal which were due in 2025 to be deferred to September 2026.

The group notes that ‘there exist circumstances that cast significant doubt on the Group’s ability to continue as a going concern’.

In line with its efforts to raise capital, the group in a separate filing indicated that a public tender has been opened by a partially-owned subsidiary to dispose of its property in the neighboring region of Hengqin.

According to a Monday posting on its ponto-legend website, the group aims to sell the entire Hengqin Legend Ponto Square. The tender was opened on September 1^st and runs until October 30^th. No opening price was disclosed regarding the bidding.

The property comprises 971 real estate properties, including 109 commercial shops and 862 parking spaces and is to be sold ‘as is’ – ‘in the physical state and condition as it stands’.

Macau Legend holds a 21.5 percent stake in the company which owns the property.