Scientific Game

Work back underway on luxury Macau hotel The 13 but lenders yet to approve deadline extension

Wednesday, 22 November 2017 05:14
Visit us

Hong Kong-listed The 13 Holdings says work has officially recommenced on luxury Macau hotel The 13 as it races to meet a revised 31 March 2018 opening deadline. But the company’s capacity to complete the project remains in limbo while it waits for lenders to approve its application for a deadline extension.

The progress update forms part of The 13 Holdings’ revenue results for the six months to 30 September 2017, which saw loss attributable to the owners of the company narrow slightly to HK$23.6 million but liabilities more than double to HK$7.8 billion, of which HK$4.1 billion in borrowings is due within one year.

In a filing to the Hong Kong Stock Exchange, The 13 Holdings said it had prepared its consolidated revenue statements for the period after deciding it had enough working capital to continue for another 12 months, but acknowledged the “existence of material uncertainties which may cast significant doubt about the group’s ability to continue as a going concern until such time as the financing plans are completed.”

Despite the uncertainty, the company announced that the remaining fitting-out work recommenced on Tuesday, having paid deposits of HK$332 million through 30 September 2017 for “furniture, fixtures and equipment for hotel operations.” Work had previously ceased in July after The 13 Holdings missed its most recent 31 July 2017 completion deadline.

The group’s six-month financial results show current liabilities exceeding current assets by approximately HK$3.6 billion, with total borrowing having increased from HK$3.9 billion as at 31 March 2017 to HK$4.1 billion.

On 20 October The 13 Holdings announced plans to obtain financing from the proposed rights issue of between 920,867,010 and 1,048,593,270 rights issue shares at HK$1.10 per share, which would bring in at least HK$1.01 billion in proceeds.

It also announced the proposed disposal of its 51.76% interest in enginerring firm Paul Y Engineering Group Limited, which has been responsible for construction of The 13, for HK$300 million as well as a placing of loan notes with an aggregate principal amount of up to HK$740 million.

The group added that it has obtained an indicative conditional offer of a further HK$600 million of financing following the opening of the hotel.

“The group intends to use the net proceeds from the above financing plans for the working capital for the next twelve months from the date of this announcement,” it said.

The 13 Holdings outlined in October its intention to use the net proceeds from the rights issue – which would see the total issued share capital of the company increase by 50% – to settle the remaining pre-opening expenses of The 13. Those expenses include costs related to decoration, furniture, fixtures and equipment, operating supplies and equipment and other hotel operation preparation costs.

The company was previously granted a temporary HK$300 million bridging loan in December, which will also be repaid via the rights issue – itself dependent upon shareholders approving a capital reorganization of the company.

It also confirmed in October its desire to include a casino inside the hotel following recent questions over its failure so far to apply for a gaming table allocation from the Macau government.

“The company’s intention is to include gaming operations in The 13 Hotel as soon as practicable, subject to the progress of the licensed operator in submitting an application for and obtaining approval for the gaming operation after the licenses for the operation of The 13 Hotel have been granted or when it is clear such licenses are almost certain to be granted as a matter of procedure,” it said.

“The authorization to install and operate a casino in The 13 Hotel is subject to the approval of the Macau Government and therefore its success remains an uncertainty. However, the company would like to reiterate that although it is the company’s intention to include gaming operation in The 13 Hotel, it is subject to, among other things, the entering into a formal agreement between the company and the licensed operator and the approval of the Macau Government, and as such, gaming operations may or may not commence at The 13 Hotel, but will not affect the opening and the hotel operation of The 13 Hotel.”

The 13 Holdings said it had entered into a Memorandum of Understanding (MOU) with an affiliate of a Macau concession or sub-concession in April 2008 in relation to the management and operation of a casino proposed to be opened in The 13 Hotel. It added that the affiliate had sent a confirmation letter in November 2010 and another in September 2012, and that it expects a formal agreement to be signed subject to the licensed operator gaining approval from the government to proceed.


What's new

Lamborghini Macau showroom opening

Lamborghini Macau showroom opening The IAG team took a break from the real world this week to attend the launch of Lamborghini's new Macau showroom Friday, 15 December 2017 07:01

Melco supports annual Macau charity event “Walk for a Million 2017”

Melco supports annual Macau charity event “Walk for a Million 2017” Melco Resorts & Entertainment Limited threw weight behind the Macau annual charity event “Walk for a Million” organized by the Readers of Macao Daily News Charity Fund. A record number of participants, with a 2,300-strong force comprising of over 2,000 adults and 300 kids carried on Melco’... Friday, 15 December 2017 05:55

Wynn to buy former Alon Las Vegas site as Crown Resorts fire sale gains momentum

Wynn to buy former Alon Las Vegas site as Crown Resorts fire sale gains momentum By Ben Blaschke The Las Vegas Strip site formerly pegged for Crown Resorts’ ambitious US$2.5 billion Alon Las Vegas project has been snapped up by Wynn Resorts. In a Thursday announcement, Crown said it had entered into an agreement with a subsidiary of Wynn Resorts Ltd to sell the vacant 34.6 a... Friday, 15 December 2017 05:41

Novomatic to acquire majority Ainsworth stake on 5 January 2018

Novomatic to acquire majority Ainsworth stake on 5 January 2018 Australian slot machine manufacturer Ainsworth Game Technology has announced 5 January 2018 as the completion date for the sale of founder Len Ainsworth’s 52% stake in the company to Novomatic. In a filing to the Australian Securities Exchange, Ainsworth said it had been advised by Novomatic that... Friday, 15 December 2017 05:07

Current Issue

2017 Inside Asian Gaming Power 50: Meet the Selection Panel

2017 Inside Asian Gaming Power 50: Meet the Selection Panel Andrew W Scott CEOInside Asian Gaming Inside Asian Gaming’s CEO first entered a casino in 1986, fell in love with the surrounds and has been around them ever since. Andrew founded World Gaming Group and launched WGM in 2009, took over IAG in 2015, debuted a third magazine called High Life in ... Tuesday, 05 December 2017 19:28

2017 Inside Asian Gaming Power 50: Ten Years On

2017 Inside Asian Gaming Power 50: Ten Years On A decade of making the Asian Gaming Power 50 By Andrew W ScottIAG Asian Gaming Power 50 selection panel Chairman EVERY year for the last decade, Inside Asian Gaming has completed a task that is fascinating, exhilarating, intellectually stimulating and industry-defining whilst simultaneously bei... Tuesday, 05 December 2017 19:12

2017 Inside Asian Gaming Power 50: Number 19 -  James Murren

2017 Inside Asian Gaming Power 50: Number 19 - James Murren 19 James Murren CHAIRPERSON AND EXECUTIVE DIRECTORMGM China Holdings POWER SCORE1,165 LAST YEAR12 CLAIMS TO FAME • Chairman of the world’s second largest casino company • Credited with keeping MGM Resorts afloat during the GFC If the strong domestic results achieved by MGM China’s pa... Tuesday, 05 December 2017 14:44

2017 Inside Asian Gaming Power 50: Number 18 - Chen Lip Keong

2017 Inside Asian Gaming Power 50: Number 18 - Chen Lip Keong 18 Chen Lip Keong CEO AND EXECUTIVE DIRECTORNagaCorp POWER SCORE1,234 LAST YEAR20 CLAIMS TO FAME • Casino monopoly within 200 kilometers of Phnom Penh runs to 2035, license to 2065. • Owns 65% of first gaming company ever listed in Hong Kong • NagaWorld extension Naga2 debuted in Novemb... Tuesday, 05 December 2017 14:39