Manila-listed Suntrust Resort Holdings Inc says a unit of Hong Kong-listed Summit Ascent Holdings Ltd has “not yet demanded” the payment of overdue interest on convertible bonds issued by Suntrust in December 2020.
Last week, Summit Ascent said its profit for financial year ending December 31, 2022, could face a “material adverse” outcome due to Suntrust failing to pay the due interest on the convertible bonds issued in 2020.
The five-year, 6.0-percent convertible bonds in the principal amount of PHP5.6 billion (US$102.7 million) were issued to Summit Ascent Investments Ltd, by Suntrust. They are convertible into shares of Suntrust. Summit Ascent said that the coupon interest amounted to PHP336 million. In Tuesday’s filing, Suntrust noted it had paid in a “timely” manner, the interest that had been due as of December 30, 2021. But Suntrust said that prior to the interest payment due date for December 2022, it approached the Summit Ascent group to “negotiate the payment arrangement”, but that “no concrete plan” had been reached up to the date of Tuesday’s announcement.
“Accordingly, Summit Ascent has not yet demanded for the payment of overdue interest,” it added.
Suntrust is developing the “main hotel casino” at the Westside City Project, located in Manila’s Entertainment City. According to information provided by the group, the project has a price tag of approximately US$1 billion, and should commence operation in 2024.
LET Group is also the controlling shareholder of Summit Ascent, the latter firm an investor in the Tigre de Cristal casino resort, near the Russian Pacific port of Vladivostok.
