The 13 Macau Faces Insolvency After Creditor Demands $423M Payment

The 13 Macau, a $1.6 1000000000 fiscal disaster, is inching finisher towards bankruptcy after I of its leading creditors issued a exact to the resort’s parent keep company to be straightaway repaid.

In securities filings with the Hong Kong Stock Exchange, South Shore Holdings Limited — the proprietor and manipulator of The 13 — says it has been notified from a loaner for the repayment of HK$3.28 1000000000000 ($423 million). Though the filing did non specify the creditor, it’s suspected to live Isaac Mayer Wise Mungo Park Business Limited, which granted South Shore a big loan inwards 2018.

If the Company fails to repay the debt within tierce weeks from the date stamp of serving of the Statutory Demand, the creditor may submit a winding upwardly petition against the Company,” the South Shore notice explained. “The Company is considering taking effectual advice inwards this regard. As the Board has only of late received the Statutory Demand, it testament occupy some time for the Board to assess the situation.”

The 13 has remained closed since the onset of the COVID-19 pandemic. The belongings is non currently taking reservations, and all of its retail shops and eateries get shuttered.

Unlucky 13

The 13 ne'er came anywhere confining to the grand vision showy Hong Kong man of affairs Stephen Hung intended.

Hung came upwards with the concept for a completely VIP-focused 201-room dress shop hotel and gambling casino at the height of Macau’s junket business concern inwards 2013. The Chinese Special Administrative Region was saucy sour a record-setting yr where the half dozen licensed commercial casino operators won more than $45 1000000000000 from gamblers.

But Communist China President Xi Jinping, concerned with the mass front of capital to Macau, a Chinese enclave that is considered a taxation haven, ordered jurisprudence enforcement to whirl downwardly on VIP junket groups. The crushing resulted in receipts gaming revenues falling to less than $28 1000000000 just deuce-ace years later.

Hung, however, pressed on with his $1.6 one thousand million casino resort. The location was far from ideal, situated more than a mile to the south of the Cotai Strip, where the multibillion-dollar large-scale structured resorts are the playgrounds for the highest of rollers. To relieve oneself up for the location, Hung purchased 30 tradition Rolls-Royce Phantom vehicles at a cost of $20 million.

The 13 finally opened in September of 2018 as a non-gaming hotel. Bookings were light, South Shore reporting that an mean(a) of only 16 of its rooms were booked nightly at the belongings in its world-class 12 months.

The Rolls’ were sold away at a rich price reduction inward June of 2019. Hung was eventually ousted from South Shore.

Stock Worthless

Due to The 13’s disastrous execution and closing since too soon 2020, shares of South Shore make get nearly worthless. The carry is worth to a lesser extent than a cent at $0.007.

At the height of South Shore’s valuation in 2014, shares were trading at $13.

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