Summit Ascent, Suntrust to settle P5.6 billion interest on Westside City bonds

MANILA, Philippines — Hong Kong-listed Summit Ascent Holdings and Suntrust Resort Holdings Inc. are in talks over unpaid interest on P5.6 billion in convertible bonds related to the development of Andrew Tan’s Westside City project in Entertainment City.

Summit Ascent holds the convertible bonds in Suntrust Resort. Both companies are subsidiaries of LET Group Holdings, formerly the Suncity Group.

Suntrust is the developer of Westside City project, the Tan-led integrated casino resort targeted to open in 2024.

In a filing with the Hong Kong Stock Exchange last week, Summit Ascent said Suntrust was unable to pay the interest on the 2020 P5.6 billion bonds ($103 million). The bonds were issued in exchange for a loan from Summit Ascent to jumpstart development work in the Westside City project.

Suntrust, in response, said talks are ongoing to resolve the issue.

“Prior to the due date of the interest payment, Suntrust Resort and Summit Ascent have been earnestly discussing the terms of the refinancing and/or restructuring of the 2020 convertible bond. While no definite agreement has been executed as of date, Suntrust believes that an agreement on the terms of such refinancing/restructuring should be forthcoming,” it said in a letter to the Securities and Exchange Commission last week.

The 2020 convertible bond has an initial term of five years from issue extendable for a further term of five years.

“However, Suntrust has been accruing interest due and the accrual is reflected as part of Due to Related Parties in the company’s quarterly financial statements, which as of Sept. 30, 2022 amounted to P295.5 million,” it said in a recent disclosure.

Suntrust is 51 percent owned by the LET Group, which used to be headed by Alvin Chau Wa.

Wa, meanwhile, was sentenced by a Macau court to 18 years in prison last week for illegal gaming, criminal association, fraud, and money laundering.

Suntrust is the developer of Tan’s integrated casino resort Westside City, which is a subsidiary of Travellers.

Travellers, in turn, is a joint venture between Tan’s listed conglomerate Alliance Global Group Inc. and the Genting Group of Hong Kong, a casino and cruise ship operator.

The project site consists of portions of three parcels of land located at Manila Bayshore Integrated City in Parañaque City.

In 2020, Suncity, now known as the LET Group, signed a co-development agreement between Suntrust and Westside City Resorts World Inc. and Travellers International.

Under the agreement, Westside City and Travellers will lease the project site to Suntrust for development of the main hotel casino.