Okada’s Tiger Resort Leisure & Entertainment Inc. made the payment to LapuLapu Leisure Inc., the subsidiary of Uy’s debt-saddled PH Resorts Group that is developing the $300 million Emerald Bay casino in Mactan Island, Cebu.
This is the first time PH Resorts disclosed a payment from Tiger, which is the Philippine unit of Japan-listed gaming giant Universal Entertainment. The group also operates the $3 billion Okada Manila integrated casino along Manila.
PH Resorts stated in its latest annual report that the amount recorded in the company's books at the end of 2023 represents a partial, non-refundable payment.
Uy has made significant strides in reducing substantial debts within PH Resorts, but the company is far from being out of financial jeopardy.
The sale of the Emerald Bay project—which was part of Uy’s aggressive borrowing and expansion binge during the Duterte administration—is also not guaranteed because the Okada Group has yet to complete its due diligence study, based on the company’s latest disclosure.
Last year, tycoon Enrique Razon Jr. pulled out similar talks to invest in Uy’s Cebu and Clark casino project. A P1 billion down payment was also made for that deal but Razon is seeking repayment of the amount until the end of 2024.
The tycoon is juggling around huge debts in other parts of his holding company, Udenna Corp.
Offloading obligations owed by PH Resorts will help the tycoon address other parts of the telecommunications, energy, real estate, logistics and food conglomerate, parts of which are being openly marketed to possible buyers or strategic partners.
Despite successfully restructuring loans with major creditor China Banking Corp., the company’s independent auditor SyCip Gorres Velayo & Co. raised red flags on the company’s debts and huge losses.
Losses in 2023 ballooned more than 200 percent to P4.2 billion, resulting in a P6.8 billion deficit. Current debts also exceeded available assets by 4.15 billion.
If the project proceed, Emerald Bay will be the province’s second major integrated casino after the Gokongwei Group’s Nustar Resort, which is located across the Mactan Channel in Cebu.
The Philippine Amusement and Gaming Corp., Nustar earned casino revenues of P5.5 billion during its first full year of operations in 2023.
The Emerald Bay project will feature a five-star hotel and a large-scale gaming floor with more than 700 electronic gaming machines and over 140 tables.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
