Philippines’?Westside City project funding deadline extended to 2025??

Jenny Ortiz May 6, 2024

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Philippines’?Westside City project funding deadline extended to 2025??

The closing date for securing funding of up to PHP13.51 billion (€219.2 million) for the casino hotel project at Westside City in Manila, Philippines has been pushed back by 12 months. Suntrust Resort Holdings, the developer behind the project, confirmed the revised date, now set for April 30, 2025, in a filing submitted on Friday.

The Westside City Project, an integrated resort located in Manila’s Entertainment City, is spearheaded by Suntrust Resort Holdings. The project aims to debut its main hotel-casino in the first quarter of 2025, aligning with the extended funding deadline.

Summit Ascent’s commitment and status??

In July 2023, Summit Ascent Investments, a subsidiary of Summit Ascent Holdings Ltd., pledged to subscribe to convertible bonds totalling up to PHP13.51 billion (€219.2 million) issued by Suntrust. However, as of last week, certain conditions necessary to finalize the agreement remained outstanding. This includes obtaining consent and approvals from regulatory bodies such as the Securities and Exchange Commission (SEC) in the Philippines.

Challenges and financial assistance??

Summit Ascent highlighted Suntrust’s financial challenges, citing failures to pay interest on previous convertible bonds. To address these issues and secure the necessary funding, Suntrust’s board approved a $38 million (€36.6 million) loan from LET Group Holdings, the parent company of both Summit Ascent and Suntrust.

As per the loan agreement, LET Group has agreed to provide a $38 million (€36.6 million) loan to Suntrust, which Suntrust must repay over 10 years starting from the execution date. However, both parties have the option to extend or shorten the repayment period by mutual agreement, or in case of default. Suntrust believes that this loan will have a positive impact on its business, operations, and financial condition, as it is expected to improve the company’s prospects.

Impact and potential delays??

The delay in securing funding and addressing financial concerns may potentially impact the completion and opening of the main hotel-casino. Summit Ascent emphasised the importance of securing necessary capital expenditures to prevent significant delays in the project’s development.?

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