South Shore Holdings, the Hong Kong-listed owners of Macau’s struggling luxury hotel The 13, reported a loss of HK$1.02 billion (US$131.6 million) for the year ended March 31.
The loss was a sizable improvement over the HK$5.85 billion (US$754.8 loss reported in fiscal 2019, but with current liabilities totaling HK$4 billion the company is trying to avoid a default and a forced liquidation over HK$2.48 billion owed a bank under a credit facility tied to the development of THE 13, which remains partially completed after opening two years ago and lacks an agreement to operate a casino.
The property, located at the south end of the Cotai resort district, generated just HK$17 million ($2.2 million) in fiscal 2020 against a reported loss of HK$994 million ($128 million).
South Shore has been trying to sell a 50 percent interest in THE 13 in hopes of settling the bank debt, but included in the 2020 earnings filing was the company’s acknowledgement of “significant doubt on the group’s ability to continue as a going concern.”
Overall, South Shore grew total revenues by 16 percent in fiscal 2020 to HK$10.9 billion ($1.41 billion), mainly on the strength of its majority owned construction and civil engineering business, PYE. The company’s property development and property investment segments lost HK$1 million ($129,000) HK$2 million ($258,000), respectively.
