Independent shareholders of Hong Kong’s Summit Ascent Holdings have voted in favor of an agreement with Philippines casino developer Suntrust Home Developers to subscribe to Php6,400,000,000 (US$127.5 million) in convertible bonds.
The agreement, first signed on 20 September, is aimed at providing Suntrust with additional resources to continue work in its US$1 billion hotel-casino project in Manila’s Entertainment City. Due to open in 2023, the project is part of the larger Westside City development and will incorporate a 450-room hotel with a casino boasting 400 gaming tables and 1,200 slot machines.
The convertible bonds are in lieu of repayment by Suntrust of a loan, provided by Summit Ascent in February, in the same amount. Summit Ascent had stated in September that subscription to the convertible bonds was dependent upon approval from the Philippine Stock Exchange and shareholders of both Summit Ascent and Suncity Group. Suncity owns 51% of Suntrust and 69.66% of Summit Ascent.
On Thursday, Suntrust said the independent shareholders of Summit Ascent subsidiary SA Investments had this week approved the extension of the maturity date of the initial loan and the subscription of additional bonds under the Convertible Bonds Subscription Agreement.
Summit Ascent, majority owner of Russian integrated resort Tigre de Cristal in Vladivistok, stated in September that providing assistance to Suntrust was in the best interests of both parties.
“During the COVID-19 lockdowns in Manila, the construction schedule of the Main Hotel Casino [has been] badly affected due to the restricted supply of construction materials and labour,” it said. “Still, the construction works of the Main Hotel Casino have never [been] suspended by setting up a ‘safe work bubble’ with vaccination and testing requirements for those working on the Project Site, which significantly reduces the risk of spread of COVID-19.
“However, a default of the loan by SunTrust would severely hinder the development of the Main Hotel Casino, in particular the ability of SunTrust to secure further financing due to a record of default. The default would also hinder the financial position of the Summit Ascent Group.”