The sale of a financially troubled luxury hotel in Macau called The 13 has fallen through, the property’s owner said.
Hong Kong-based South Shore Holdings said it has failed to reach agreement with an unidentified consortium of buyers on an extension for completing the sale. The extension would have been the fourth reportedly sought by the buyers.
The HK$750 million deal (US$97 million) was supposed to entail at least 50 percent of the Cotai property, which had been designed to target an ultra-rich clientele but never fully opened and never obtained an agreement to allow it offer a casino.
The collapse leaves South Shore in an increasingly precarious financial position. The company had to apply earlier this year for a “standstill” to prevent a bank from foreclosing on HK$2.48 billion owed it under a term loan and liquidating the company. The demand for repayment was issued after South Shore was unable to repay HK$470 million of the loan that came due in March.
The company said it would continue to pursue a sale of THE 13 and “will work with the bank on any further remedial measures as appropriate.”
