SCUTTLEBUTT

Uy resort nixes P22B in commitments

Embattled PH Resorts Holdings Group Inc., led by Davao City-based trader Dennis Uy, who is also behind the stalled Emerald Bay casino project in Mactan, Cebu, has repudiated an P8.75-billion financial liability and a development commitment of more than P13 billion.

PH Resorts’ second-quarter earnings filing at the Philippine Stock Exchange on Friday mentioned the obligations.

A “going concern” warning on the future of the group was reiterated in the latest filing.

In October 2023, the company restructured its outstanding indebtedness to China Banking Corp (Chinabank) through an agreement on the sale and leaseback, referred to as an SLBB, with an option to buy back certain land and improvements of Emerald Bay’s developer entities, Lapulapu Leisure Inc. (LLI) and Lapulapu Land Corp. (LLC).

PH Resorts noted in its latest filing that its option to repurchase the parcels of land and the “construction in progress” at Emerald Bay, under the SLBB with Chinabank, expired on 31 March.

“In connection with this, the corresponding property plus improvements totalling P13.65 billion—the ‘Mactan properties’---as well as the financial liability of P8.75 billion originating from the SLBB repurchase option were derecognized from LLI and LLC’s books.”

In May, local media reported that Chinabank planned to sell the Emerald Bay site.

The group also said that as of 15 August, a previously outstanding P76-million balance had been repaid on a P1-billion deposit that was provided by casino complex operator Bloomberry Resorts Corp.

In March 2023, however, Bloomberry terminated a non-binding agreement to invest in a unit of PH Resorts, citing “adverse due diligence findings and regulatory actions.”

For the first six months of 2025, PH Resorts reported a net loss of nearly P6.75 billion, “mainly due” to a P7 billion “loss on extinguishment of financial liability related to the Chinabank SLBB transaction.”

Overall, that resulted in a deficit of P11.66 billion, and a “capital deficiency” of nearly P5.83 billion as of 30 June.

The group also said it had received in the first quarter of 2025 advances from “related parties” totaling P318.6 million, of which P300 million came from construction giant EEI Corp., through Udenna Corp., the ultimate parent of PH Resorts.