AUSTRALASIA 40
CNMI
IPI secures financing but construction deadline slips Imperial Pacific said it believes it has adequate funds to cover its working capital needs for at least the next 12 months after a round of talks with lenders, though the operator has warned that it will not be able to meet the new extended deadline for completion of the resort.
T
he Hong Kong-listed operator posted a loss of HK$2.97 billion ($378.4 million) in 2018 from a profit of HK$637.5 million the year earlier after revenue plunged by more than 58 percent. VIP revenue, the mainstay of its operations, plunged 60.4 percent to $2.9 billion. Imperial Pacific said its results had been badly affected by Typhoon Yutu in October, which shut down the island’s airport for a month; distractions from the FIFA World Cup in summer and also a tightening in marker credits as the group sought to get bad debts under control. The group had net current liabilities of HK$4.74 billion and capital commitments of approximately HK$457.75 million as of 31 December 2018. Despite this, “directors consider that the group will have adequate funds available to enable it to operate as a going concern,” it said. Imperial Pacific recently secured HK$543 million in loans from independent third parties and agreed with lenders to extend the repayment terms on some $434.8 million, which had been due this year. It also agreed to the refinancing of loans already overdue to the latter part of this year and secured $1.15 billion in credit facilities. “The management is in discussion with certain potential investors with a view to secure long-term financing principally to be used to complete the remaining construction of the integrated gaming resort,” it said. However, when the resort will be completed is still up in the air. At present, the operator is relying on three villas and four yachts, as well as rooms secured from high-quality local hotels to accommodate its VIP guests. The hotel room shortage on Saipan is impeding the company’s ability to attract higher volumes of guests and therefore completion of construction is key.
Asia Gaming Briefings | May 2019
In March, Imperial Pacific’s vice president for construction Eric Poon told the local regulator that they will not be able to meet the extended deadline for completion due to an ongoing labour shortage. After missing a deadline to get the first
phase of the resort finished last August, the group negotiated a Feb. 28, 2021 deadline with regulators. The group has now said it expects a “partial opening” on Sept. 30th, but gave no details as to what facilities would be available. Poon told the Commonwealth Casino
