PH Resorts Group has obtained an initial “non-refundable” payment of PHP300.1 million ($5.2 million) from Tiger Resort as it moves to relinquish majority ownership of Cebu-based Emerald Bay.
This payment is for a stock subscription, which, upon completion, would transfer majority ownership of the operating interest for the paused Emerald Bay casino resort project in Cebu to Tiger Resort, Leisure and Entertainment, Inc (TRLEI).
Tiger Resort holds controlling authority over the Okada Manila casino complex situated in Entertainment City, Manila.
The news was updated in the company’s annual report published to the Philippines Stock Exchange (PSE) on Tuesday.
In December last year, TRLEI, under the umbrella of Japan’s Universal Entertainment, disclosed a preliminary agreement with PH Travel and Leisure Holdings Corp, a subsidiary of PH Resorts. This agreement outlines the acquisition of specific interests in Lapulapu Leisure Inc (LLI) and Lapulapu Land Corp (LLC), both subsidiaries of PH Travel responsible for developing Emerald Bay.
PH Resorts has been financially struggling, with the Cebu integrated resort (IR) operator revealing liabilities surpassing its current assets by PHP303 million ($5.24 million) and PHP1.97 billion ($34 million), respectively, in 2023 and 2022.
The group has actively pursued financing and capital-raising initiatives to ensure it maintains “sufficient cash flows” for meeting debt obligations and project completions, as outlined in the annual report.
Notably, PH Resorts restructured its outstanding debt with China Banking Corp, a Philippine lender, in October 2023. This involved an agreement concerning the sale and leaseback, with an option to repurchase, of specific land and improvements held by Emerald Bay’s developer entities, LLI and LLC.
PH Resorts also sought funding from Bloomberry Resorts but concluded without an agreement.
