PH Resorts Group has denied reports suggesting that the deal with Okada Manila operator Tiger Resort, Leisure and Entertainment Inc. (TRLEI) to purchase its Cebu resort, Emerald Bay, is on the verge of collapse.
The clarification was shared via a filing with the Philippine Stock Exchange on Monday. PH Resorts Group confirms it remains on schedule to finalize the sale of Emerald Bay to the operator of Okada Manila by July.
A report last week, citing industry insiders, indicated that discussions for the Okada Group to salvage PH Resorts Group’s stalled $300-million Emerald Bay casino are nearing collapse. The issue appears to stem from a disagreement over commercial terms.
Sources cited indicate that the challenge does not concern the project’s feasibility but rather what one insider described as “unrealistic” conditions set by the selling party. For instance, Dennis Uy seeks a premium for his remaining stake in the project and repurchase rights after selling and leasing back the project land to settle substantial debts owed to the Sy-led China Banking Corp.
The same report noted that discussions during the standard due diligence review seemed promising, with the Okada side making nonrefundable down payments totaling over PHP327 million ($5.56 million) to PH Resorts.
However, PH Resorts has indicated that the information provided in the report is ‘inaccurate’.
‘The report that there is a disagreement on commercial terms as there are “unrealistic terms” set by the selling party is largely unfounded and not even part of the current discussions between the relevant parties.’ clarified the statement.
