South Shore Holdings Limited, owner and operator of embattled Macau hotel THE 13, reported a loss attributable to owners of the company of HK$429 million for the six months to 30 September – impacted by the ongoing suspension of hotel operations.
The half-year loss represents a 15% improvement over the HK$507 million loss reported over the same period last year thanks to an operating profit of HK$161 million from the company’s 51.76%-owned engineering business, Paul Y. Engineering Group Limited (PYE).
However, those gains were offset by THE 13, which recorded a loss of HK$513 million for the period on zero revenue after suspending operations early in the year in the face of COVID-19.
The latest results come just days ahead of a Special General Meeting called by one of the group’s shareholders, Global Allocation Fund, for 4 December 2020 to vote on winding up the company.
Global Allocation Fund had stated upon requesting the SGM that it considered winding up to be the best option for South Shore due to “the net liabilities position of the Group, the suspension of operations of the Hotel and the poor performance of the Hotel generally.”
“The remaining value in the Company will best be maximized with an independent unwind process supervised by a court,” it said.
South Shore was earlier this year forced to apply to its bank for a “standstill” to prevent enforcement of security over THE 13 Hotel in Macau and liquidation of the company. That application was in response to the bank issuing a demand for immediate payment of HK$2.48 billion owing under its facility agreement, with South Shore having stated it was unable to make a HK$470 million payment due on 31 March 2020.
The company has since outlined plans to try and sell THE 13 before the end of its financial year on 31 March 2021, citing outstanding liabilities of HK$6.48 billion in its hotel business.