PH Resorts Group looks to tackle its capital deficit
The operator currently has a PHP 500m capital deficit, which it has announced plans to fix.
Key points:
– PH Resorts has announced that it intends to reduce its capital deficit
– This update comes following a request from the Philippine Stock Exchange for the company’s long-term financial plan
– The operator has not yet detailed any specifics for how it plans to tackle its debt
Operator PH Resorts Group has announced intentions to eradicate its current PHP 500m ($8.8m) company deficit, but has not yet specified its long-term roadmap to ensure the plan’s success.
This latest specification comes in the wake of rumblings that PH Resorts secured a PHP 300m white knight investment from contractor EEI Corporation last January, following the breakdown of negotiations with three prior potential investors. However, since that time, no updates on the potential investment have been distributed by either party.
Now, this notice that specifies the company’s intentions to tackle its capital deficit would indicate that a positive investment source may have been found by PH Resorts. Indeed, a deal such as this would be timely – as the Philippine Stock Exchange has also recently instructed the organisation to specify its long-term plan to reduce of its deficit.
A recent key point of contention for PH Resorts Group has been its Cebu-based Emerald Bay property, which was sold to China Banking Corporation in 2023. The sale was brokered as part of a debt restructuring programme that yielded a lease and buyback option for the property. Nevertheless, last summer, PH Resorts attempted to sell Emerald Bay to Okada Manila – with the deal collapsing in notable fashion following the denial of any issues by PH Resorts.
Good to know: During H1 2024, PH Resorts reported a net loss of PHP 494.3m
More recently, in May, Chinabank has now officially listed Emerald Bay Resort – and the attached land – up for sale. In response, PH Resorts has clarified that it is ‘too busy’ with ongoing projects to take over the unfinished development, bringing its affiliation with the property to an end.
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