PH Resorts Group Holdings, Inc. has still not been able to find new suitors for its Emerald Bay project, despite restrictions previously in place due to its previous deal with Tiger Resort Leisure & Entertainment, Inc (TRLEI) having been lifted.
The company is currently engaged in the construction of the Emerald Bay integrated tourism resort on Mactan Island, Lapu-Lapu, Cebu, which is expected to benefit from a seven-year exclusivity period upon completion.
The construction of Emerald Bay, which began in December 2017, is currently on hold as PH Resorts recast its timetables and specifications in light of ongoing negotiations. The resort will be constructed in two phases, and the timeline for the first phase’s opening remains uncertain as strategic investor discussions continue.
In addition to the Emerald Bay project, PH Resorts operates a resort in Panglao Island, Bohol, which has been in commercial operation since 2018.
The group reported a net loss of PHP494.3 million ($8.67 million) for the first half of 2024, an improvement from the PHP1.08 billion ($18.96 million) in losses in the same period last year.
This loss is attributed primarily to ongoing pre-development expenses, contributing to an accumulated deficit of PHP7.32 billion ($128.66 million) as of June 30th, 2024. At the same time current liabilities exceeded current assets by PHP12.33 billion ($216.51 million) as of June 30th, 2024.
Negative operating cash flows of PHP97.2 million ($1.71 million), compared to PHP27.0 million ($474,000) in 2023.
PH Travel, the Group’s immediate parent company, signed a term sheet with Bloomberry Resorts Corporation (BRC) in May 2022 for a potential investment in the Group’s subsidiary, LLI.
However, this agreement was terminated in March 2023, prompting PH Resorts to reengage with other interested investors. While navigating this transition, the group retained a PHP1 billion ($17.54 million) deposit from BRC.
Earlier in December 2023, PH Travel executed another term sheet with Tiger Resort Leisure & Entertainment, Inc. (TRLEI) to acquire majority ownership of LLI and LLC for the Emerald Bay project.
On July 1st, 2024, PH Travel and TRLEI terminated the term sheet, with PH Resorts now saying that it is now in discussions with several other parties interested in the development.
‘Despite this termination, the Group saw an opportunity to engage with other interested parties regarding the Emerald Bay Project, which had previously been restricted due to the TRLEI agreement. Discussions with several strategic investors are currently ongoing, with due diligence at various stages of completion’, the company added in its latest financial report.
As of June 30th, 2024, LLI received a nonrefundable amount of PHP327.6 million ($5.7 million) from TRLEI, classified as part of advances for future stock subscription under liabilities in the consolidated statement of financial position.
