Suntrust has no “sufficient information” on “direct effect” of Tigre de Cristal licensee sale

Suntrust Resort Holdings Inc., the developer of a casino hotel project in Westside City, Manila, said that it does not yet have “sufficient information available” on the possible repercussions of the sale of the Tigre de Cristal licensee by two of its affiliated companies.

Summit Ascent Holdings Ltd., a longtime investor in the Russian casino resort Tigre de Cristal, declared non-compliance with Hong Kong Stock Exchange listing rules after the majority of its directors resigned in protest of a deal involving the sale of Tigre de Cristal’s gaming license holder, G1 Entertainment LLC, for US$116 million. “Uncertainties” resulting from the continuing war between Russia and Ukraine were cited as the basis for the resignations.

As of right now, Summit Ascent’s chairman and only director is regional casino investor Andrew Lo Kai Bong. He serves as chairman and director of his parent business, LET Group Holdings Ltd., which is traded on the Hong Kong Stock Exchange. All of the board members of LET Group, which via a subsidiary owns 51 percent of Suntrust, resigned in reaction to criticism of the Tigre de Cristal licensee transaction, with the exception of Mr. Lo.

In a statement, Suntrust said that once further details are available, its management will assess how the transaction may affect the businesses of its affiliates. The LET Group owns the convertible bonds that Suntrust has issued, while Summit Ascent Investments Ltd., a Summit Holdings affiliate, is the owner of a significant chunk of Suntrust’s convertible bonds.

Summit Investments and Suntrust came to an arrangement in 2023 wherein Summit would purchase a convertible bond from Suntrust to settle the latter’s outstanding debt from previous convertible bonds. The PHP13.5 billion convertible bond, according to the most recent filing, has not yet been issued.

Original story by: GGRAsia