Summit Ascent Holdings, the majority owner of Russian casino resort Tigre de Cristal near Vladivostok, says it is in discussions with Philippines casino developer Suntrust Resort Holdings, Inc over the latter’s failure to pay Php336 million (US$6.2 million) in interest owing on convertible bonds subscribed to in late 2020.
According to information filed with the Hong Kong Stock Exchange overnight, Summit Ascent subsidiary Summit Ascent Investments Limited subscribed to the bonds, in an aggregate principal amount of Php5.6 billion (US$103 million) on 30 December 2020. The bonds provided a 6.0% coupon rate for an initial term of five years, payable annually from the issue date.
However, “Suntrust failed to pay the coupon interest for the second year due on 30 December 2022 after the lapse of a 15-day grace period provided under the terms of the 2020 Convertible Bonds,” Summit Ascent said.
The company added that failure to pay would have a material impact on its finances for the year ended 31 December 2022.
“The Company is in discussion with Suntrust on the payment arrangement of the overdue interest but no concrete plan has been reached as at the date of this announcement,” it said.
Suntrust’s failure to pay interest on the convertible bonds comes after it last year issued another US$120.9 million worth of convertible bonds to Summit Ascent in lieu of repaying a loan.
Those bonds related to US$127.7 million owed to Summit Ascent for a loan provided in early 2021 to facilitate development work on the hotel and casino project in Entertainment City, Manila.
Suntrust’s Manila casino project, part of a larger Westside City development, will incorporate a 450-room hotel with a casino boasting 400 gaming tables and 1,200 slot machines. It is currently scheduled to open in late 2024.
Suntrust is 51% owned by LET Group, formerly known as Suncity Group, which also holds a 69.66% stake in Summit Ascent.
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