The 13 Macau Faces Insolvency Just after Creditor Requires $423M Payment

Posted on: June 5, 2021, 02:29h. 

Past current on: June 5, 2021, 02:29h.

The 13 Macau, a $1.6 billion fiscal disaster, is inching nearer toward individual bankruptcy after a person of its primary creditors issued a demand to the resort’s parent company to be promptly repaid. 

The 13 Macau hotel casino
The 13 Hotel in Macau. The resort, which was to incorporate a VIP on line casino but was by no means capable to open up the gaming house, is going through individual bankruptcy. (Picture: On line

In securities filings with the Hong Kong Stock Exchange, South Shore Holdings Constrained — the owner and operator of The 13 — says it has been notified from a lender for the compensation of HK$3.28 billion ($423 million). However the submitting did not specify the creditor, it is suspected to be Smart Park Business Restricted, which granted South Shore a large loan in 2018.

If the Business fails to repay the debt in just a few months from the day of support of the Statutory Demand from customers, the creditor may well present a winding up petition towards the Corporation,” the South Shore notification described. “The Company is contemplating taking authorized suggestions in this regard. As the Board has only not long ago acquired the Statutory Demand from customers, it will just take some time for the Board to assess the circumstance.”

The 13 has remained closed considering that the onset of the COVID-19 pandemic. The assets is not now having reservations, and all of its retail shops and eateries have shuttered.

Unfortunate 13

The 13 in no way came wherever close to the grand vision flamboyant Hong Kong businessman Stephen Hung meant. 

Hung arrived up with the notion for a completely VIP-centered 201-place boutique resort and casino at the peak of Macau’s junket organization in 2013. The Chinese Distinctive Administrative Region was fresh of a record-setting yr where by the 6 certified business on line casino operators gained far more than $45 billion from gamblers. 

But China President Xi Jinping, anxious with the mass motion of capital to Macau, a Chinese enclave that is considered a tax haven, purchased law enforcement to crack down on VIP junket groups. The suppression resulted in gross gaming revenues dropping to considerably less than $28 billion just a few decades afterwards.

Hung, having said that, pressed on with his $1.6 billion on line casino resort. The site was significantly from perfect, found far more than a mile south of the Cotai Strip in which the multibillion-greenback significant-scale built-in resorts are the playgrounds for the maximum of rollers. To make up for the location, Hung bought 30 tailor made Rolls-Royce Phantom vehicles at a expense of $20 million. 

The 13 lastly opened in September of 2018 as a non-gaming resort. Bookings have been gentle, South Shore reporting that an ordinary of only 16 of its rooms were being booked nightly at the residence in its initially 12 months. 

The Rolls’ have been offered off at a deep price reduction in June of 2019. Hung was eventually ousted from South Shore. 

Inventory Worthless

Due to The 13’s disastrous efficiency and closing due to the fact early 2020, shares of South Shore have become virtually worthless. The inventory is truly worth a lot less than a cent at $.007. 

At the top of South Shore’s valuation in 2014, shares have been trading at $13.