Suncity Group Holdings reported a weak 2018 earlier this month as it struggles to find a solid footing. Despite an increase in revenue of 45.5% year-on-year, it got a raw deal over the exchange of convertible bonds and derivative instruments, ultimately resulting in the company having to report a loss of $217.5 million after having been on the plus side for 2017 with $29.35 million. Now, 
the company’s chairman may come to the rescue and issue a substantial loan to the company to help it right the ship.
According to a filing with the Hong Kong Stock Exchange, Suncity revealed that Alvin Chau Cheok Wa, the company’s chairman, has agreed to provide a loan of about $192 million to the company. That loan would come through Star Hope Ltd., an entity that Chau owns completely. The deal would see an unsecured loan provided to Suncity for a maximum period of three years, with Chau earning 3.5% annually on the loan.
The money will give Suncity a lot of breathing room, according to the filing. The company said that it will be able to “continue to diversify its businesses to tourism-related real estate in Asian countries and seek opportunities on the provision of consultancy services to hotels and integrated resorts.” It added, “The Group aims to build an integrated tourism-related platform with equity investments in integrated resorts and the provision of tourism-related services to integrated resorts within the Asian region. The Directors (excluding Mr Chau) consider that the Facility will strengthen the financial position and provide additional working capital to the Group.”
Last year, Suncity took a 34% stake in Hoiana, an integrated resort located in Vietnam. That move followed a number of delays as the company sought to secure the deal. It also purchased 3.29% of Summit Scent, the Hong Kong-listed company operating the Tigre de Cristal IR near Vladivostok, Russia. Suncity now is looking to expand into Cambodia and has signed an agreement to participate in a casino in Sihanoukville in that country.
Suncity is also engaged in discussions with Paradise Co. out of South Korea to be a part of the Paradise Casino Busan. For that deal, it has already signed a memorandum of understanding and that partnership is designed to allow the company to focus “on expanding its tourism related businesses and the board believes that should the possible co-operation materialize, it can enable both parties to form a synergy and develop its own strengths, resources and expertise; and at the same time bring about mutual complementarity thereby creating a win-win strategic relationship.”
