Bloomberry Resorts, controlled by billionaire Enrique Razon Jr., extended its patience further in awaiting a P301-million refund from Davao businessman Dennis Uy who continued to struggle with huge debts as a consequence of his over-leveraged empire.

The sentiment underscores a narrative of Razon’s strategic retreat from a risky investment and Uy’s scramble to stabilize his operations.

Uy’s PH Resorts Group Holdings has repaid P699 million of a P1 billion deposit owed to Enrique Razon Jr.’s Bloomberry Resorts following the termination of an investment deal in March 2023, leaving P301 million outstanding.

Bloomberry ended the partnership — intended to fund PH Resorts’ Cebu and Clark casino projects — due to adverse due diligence findings and regulatory concerns after a 10-month review.

Facing financial strain, PH Resorts missed the initial December 2024 repayment deadline, prompting Bloomberry to extend it to 31 March 2025.

The situation highlights PH Resorts’ broader challenges in managing debt and completing its projects, while Bloomberry moves forward with its growth initiatives.

In May 2022, Bloomberry Resorts, signed a term sheet with PH Resorts Group Holdings, led by Dennis A. Uy, to invest in two casino resort projects: the Emerald Bay Resort Hotel and Casino in Cebu and The Base Resort Hotel and Casino in Clark, Pampanga. These projects were under the subsidiaries Lapulapu Leisure Inc. and Clark Grand Leisure Corp., respectively, both part of PH Resorts’ portfolio.

The deal was intended to expand Bloomberry’s footprint beyond its flagship Solaire Resort and Casino in Manila, while providing much-needed financial relief to Uy’s debt-laden PH Resorts, which had struggled amid the economic fallout of the Covid-19 pandemic and mounting liabilities.

The agreement was subject to conditions such as due diligence, regulatory approvals, and creditor consent. Bloomberry advanced a P1 billion deposit as part of the preliminary arrangement, signaling its commitment pending the completion of these conditions.

After a 10-month process, Bloomberry terminated the term sheet in March 2023. The decision was attributed to “adverse due diligence findings and regulatory actions,” as noted in Bloomberry’s filings with the stock market.

While specific details of these findings were not publicly elaborated, they likely pointed to financial instability or compliance issues within PH Resorts’ operations or the projects themselves.

White knight retreats

The termination marked a significant setback for Uy, who had been seeking a “white knight” to salvage his casino ventures, especially as his broader Udenna conglomerate faced mounting debt from an aggressive expansion during the Duterte administration.

Following the termination, Bloomberry demanded the return of its P1 billion deposit. PH Resorts, however, struggled to repay the full amount promptly, reflecting its ongoing liquidity challenges.

In August 2023, Bloomberry agreed to give PH Resorts until the end of 2024, approximately 18 months, to refund the P1 billion deposit.

This initial extension was a concession to Uy’s cash-strapped company, which had been divesting assets that included stakes in 2GO Group Inc. sold to SM Investments Corp. in 2021 and restructuring debt through a sale-and-leaseback deal with China Banking Corp. in 2023 for the Emerald Bay property, to stay afloat.

According to Bloomberry’s 2024 annual report, PH Resorts had repaid P699 million of the P1 billion by the end of 2024, leaving a remaining balance of P301 million.

Despite the partial repayment, PH Resorts failed to meet the full obligation by the 31 December 2024 deadline.

Bloomberry subsequently extended the deadline again, setting a new target of 31 March 2025, for the outstanding P301 million to be settled, underscoring PH Resorts’ persistent financial difficulties and Bloomberry’s willingness to allow additional time, possibly to avoid legal escalation or further losses.

PH Resorts has faced significant hurdles in completing its casino projects. The Emerald Bay project in Cebu, its flagship development, has been delayed multiple times, with completion pushed from 2022 to 2023, and later targeted for 2026, due to funding shortages.

The Clark project, meanwhile, was voluntarily suspended in October 2020 amid uncertainties in the gaming industry and increased competition in the region.

Financial statements from PH Resorts reveal a dire situation: as of mid-2023, it reported total assets of P18.8 billion against liabilities of P14.1 billion, including P6.1 billion in loans, with losses ballooning to P1.1 billion in the first half of 2023, up from P333.1 million the previous year, largely due to interest payments.

The termination by Bloomberry forced PH Resorts to seek alternative investors, though no significant partnerships have been finalized as of early 2025.

The company’s debt restructuring efforts, such as the 2023 agreement with China Banking Corp., have provided temporary relief but are not considered a long-term solution.

For Bloomberry, the terminated deal allowed it to refocus resources on its expansion plans and further fuel growth in its businesses including the Solaire Resort North in Quezon City, which opened in May 2024, and potential developments in Cavite.

The P1-billion deposit, while a substantial sum, represents a recoverable asset for Bloomberry, a financially robust company with a strong track record in the gaming sector.