Summit Ascent Optimistic on Tigre de Cristal despite Russia’s Declining Economy

March 17, 2022 Macau Emerging Markets

Summit Ascent understands that Russia is completely unstable right now. However, it is confident that its Tigre de Cristal resort will successfully navigate the situation and emerge strong.

Russia’s invasion of Ukraine, according to many analysts, will have an impact on the global economy for years. Domestically, the fallout could be much worse, as sanctions increase and businesses leave the country.

Summit Ascent issued a statement today to update the gaming industry on its position with Tigre de Cristal. It explained that it is closely monitoring the war between Russia and Ukraine, including how the ruble’s plummeting value and interest rates might impact operations.

What was to be a self-sustaining resort region in the Russian Far East faces trouble, as well. NagaCorp already stopped its involvement in the construction of a resort there. Summit Ascent isn’t ready to back out. It is, however, paying very close attention to unfolding developments.

Tigre de Cristal Remains Viable
Summit Ascent added that it will continue to assess the situation and make adjustments if and when they are necessary.

The update follows only a couple of months after Suncity Group, its controlling entity, fell apart. Suncity bought a significant portion of Summit Ascent in 2020. However, after Macau officials arrested former Suncity boss Alvin Chau, the company faced a new set of problems.

The acquisition led Suncity to own almost 70% of Summit Ascent. Chau lost his stake in Suncity – and Suncity lost a source of funds – when the disgraced executive failed to repay a loan to lenders.

Upcoming Financial Statement Shows Losses
Tigre de Cristal isn’t likely sitting in a good place financially. It closed in 2020 because of COVID-19 and has had difficulty finding solid ground after reopening last year.

As a result of the issues it has experienced, Summit Ascent is not in a good spot financially. It apparently has money saved somewhere, since it says it doesn’t need financial assistance. But its losses are mounting.