MANILA, Philippines– Casino developer Suntrust Resort Holdings confirmed reports that it failed to pay $6 million (P327 million) in interest owing on convertible bonds issued for its luxury hotel casino in Parañaque City.

In a stock exchange filing on Friday, January 20, Suntrust addressed a report by Inside Asian Gaming and confirmed that it did not pay interest on the P5.6 billion convertible bond issued to Summit Ascent Investments Limited, the majority owner of Russian casino resort Tigre de Cristal.

The convertible bonds have a coupon rate of 6% per annum payable yearly in arrears, and has an initial term of five years from issue extendable for a further term of five years.

Documents submitted to the Hong Kong Stock Exchange earlier revealed that Suntrust failed to pay the coupon interest for the second year due last December 30, 2022 after the lapse of a 15-day grace period. Suntrust’s non-payment would have a “material adverse” outcome on finances, Summit Ascent said.

Suntrust told the Philippine Stock Exchange that no definite agreement has been made for refinancing or restructuring of the convertible bonds, but noted that a deal “should be forthcoming.”

Suntrust entered into a deal with Summit Ascent to bankroll the development of a five-star hotel casino at the Manila Bayshore Integrated City in Parañaque City.

Suntrust then signed an agreement with Westside City Resorts World Inc. for the operation and management of the 400-room hotel, which is set to open by 2024. The development is part of Megaworld’s Westside City project in Parañaque City.

Suntrust shares fell 3.85% on Friday. –Rappler.com

$1= P54.54