Alvin Chau transfers US$500 million in Suncity Group loans
Alvin Chau pledges to provide additional funds up to a maximum of US$775 million from his own pocket in the form of additional perpetual securities
According to news reported by Inside Asian Gaming, The Chairman of the largest junket operator in Asia, Suncity Group Holdings Limited, Alvin Chau, has exchanged existing shareholder loans worth HK$3.88 billion (US$500 million) into perpetual securities.
The perpetual securities, a move Suncity says will “reduce its gearing ratio, enlarge its capital base and enhance its net asset position,” issued on Tuesday, have no expiry date, giving Suncity the option whether or not to pay back the interest and principal from the 10th year on, Suncity said.
Chau has also pledged to provide additional funds up to a maximum of HK$6 billion (US$775 million) from his own pocket in the form of additional perpetual securities.
The additional funds will be used to subsidise Suncity’s integrated resort projects, including the US$4 Billion Hoiana IR in Vietnam, Russia’s Tigre de Cristal and a US$700 million hotel and casino development at Westside City Resorts World in Manila, Philippines.
“Suncity Group is riding on the fast-track of integrated resort development,” said Alvin Chau. “I completely understand that a high growth company like Suncity requires a lot of funds to expand. As the largest shareholder, the largest creditor and the Chairman of Suncity Group, I am happy to dip into my own pockets to ensure that Suncity’s expansion will go on.
“I am fully backing Suncity, and I am confident that Suncity will soon turn into one of the most aspiring leaders in integrated resorts in Asia.” Alvin Chau added.
Suncity expounded on the decision to exchange his shareholder loans into perpetual securities as a “strong injection of confidence into the Group as this shows that Mr Chau is not worried about the Group’s ability to repay him.”
Last month, Chau disclosed the company’s financial situation, said “Our financial situation has been very stable, we have the capability and enough capital to offset any bad debts and chip deposits of all clients”, in response yet to another rumor that Suncity Group was in a financial struggle apart from Suncity’s alleged involvement in Hong Kong’s protests.
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