LET Group Holdings, formerly known as Suncity Group, and its majority-owned subsidiary Summit Ascent Holdings have terminated a revolving loan agreement under which Summit Ascent was to have provided its parent with a loan worth up to HK$500 million (US$64 million).
The update was provided via a Hong Kong Stock Exchange filing overnight, although no reason was given for the two parties entering into a deed of termination. However, both parties did note that the decision to terminate now frees up HK$479.3 million (US$61 million) in capital remaining from a 2020 Rights Issue which saw LET Group become majority shareholder in Summit Ascent.
Those funds had been planned for the Phase II development of Summit Ascent’s Russian casino-resort Tigre de Cristal before the expansion project was put on hold due to uncertainty surrounding the Russia-Ukraine conflict.
When first announced in January, LET Group said it had planned to use the revolving loan to fully repay its existing loan and interest, to repay other outstanding liabilities and for business development and general working capital.
LET Group is majority owner of Summit Ascent with a 69.66% stake, holds a 34% stake in Vietnamese integrated resort Hoiana and is majority owner in Philippines-listed Suntrust Resort Holdings Inc, which is developing a US$1 billion casino-hotel in Manila’s Entertainment City.
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