Hong Kong-listed Suncity Group Holdings and its majority-owned subsidiary Summit Ascent Holdings have both been placed under a trading halt amid concerns over a possible loan default.
Trading in shares of the two companies was halted Thursday morning with each issuing identical statements shortly after foreshadowing “an announcement in relation to a possible loan default by an associate of the ultimate controlling shareholder of the company and possible enforcement of securities charged.”
Suncity’s controlling shareholder is Alvin Chau, who was arrested by Macau’s Judiciary Police two weeks ago and subsequently sent to prison to await trial for alleged criminal association, illegal gambling and money laundering. Chau stepped down as Chairman of Suncity Group and Summit Ascent last week.
This is the third time since Chau’s arrest that the two companies have entered a trading halt, with Suncity having warned previously that the potential loss of financial support that Chau has previously provided the group by way of shareholder loans and subscribing to securities could be damaging, That support, it added, had been crucial to fulfilling the company’s ongoing development commitments in Vietnam, the Philippines and Russia.
Suncity is an investor in Vietnam integrated resort Hoiana, and is majority shareholder in a Philippines entity currently developing a US$1 billion hotel and casino in Manila’s Entertainment City precinct. It is also majority owner of Summit Ascent, which owns Russia’s Tigre de Cristal in Vladivostok.