Shareholders of ailing Macau resort operator South Shore Holdings were scheduled to meet December 4 to vote on folding the company.
Hong Kong-listed South Shore reported a loss of HK$429 million for the six months ended September 30, driven principally by a loss of HK$513 million at its stillborn Cotai hotel, The 13, partially offset by an operating profit of $161 million from the company’s Hong Kong-based construction business, Paul Y. Engineering.
Shareholder Global Allocation Fund, which called the special general meeting, said it considers liquidation to be the company’s best option in view of the “net liabilities position of the group, the suspension of operations of the hotel and the poor performance of the hotel generally.”
“The remaining value in the company will best be maximized with an independent unwind process supervised by a court,” it said.
The 13 was envisioned as the category-killer of Macau’s VIP sector, but the ultra-luxury, all-villa resort failed to secure backing for a casino, and South Shore was able to muster financing for only a partial opening in September 2018.
The Covid crisis only worsened its difficulties, and earlier this year, South Shore had to apply to the property’s principal banker for a “standstill” to prevent a forced liquidation after a lender demanded immediate repayment of HK$2.48 billion owed it under a facility agreement.
The resort, which currently is carrying outstanding liabilities of more than HK$6 billion, has been for sale for months, but as yet has failed to locate a buyer.
