The bank requested immediate payment, which covers the entire amount plus interest, after the company failed to pay HK$470m by the end of March. South Shore was relying on the disposal of a 50% interest in Uni-Dragon to cover the payment, but the disposal hasn’t happened yet.
The company released a statement where it explained the request for the standstill and expressed hope for the bank’s consideration, “in essence seeking assurances from the bank that it will not take imminent steps either to enforce its security over THE 13 Hotel or to liquidate the Company,” it read.
South Shore added it envisages “working closely with the bank to achieve an orderly divestment of the company’s interests in THE 13 Hotel.”
South Shore also discussed the difficulty of the COVID-19 virus and how it affected Macau’s market. But the loss related to the hotel cannot be placed entirely on the pandemic. Over half a year, until September 2019, the facility lost HK$506.7m due to increased costs. The hotel remains unfinished and the company didn’t apply for a gaming license, despite having gaming facilities on the premise.
Currently, the company is in talks with possible buyers over a 50% stake in THE 13. It’s said the date to fulfil the conditions of the agreement has been pushed about three months to 14 June 2020.
