It said it fulfilled its legal requirement for immediate repayment of outstanding debt, estimated to be worth $422.8 million.
The order for Hong Kong-listed South Shore Holdings Limited comes just two weeks after the company said it expects to stop trading in its shares and post a deficit of about $122.3 million in the 12 months to the end of March. Sources detailed that the company now faces a real possibility of bankruptcy if it fails to fully repay its disgruntled sponsor Wise Park Business Limited.
South Shore Holdings Limited was known as Louis XIII Holdings Limited until it received a name change in 2016, and reportedly premiered 13 hotels with 200 rooms as “the world’s most luxurious hotels” about 34 months ago. But the $1.6 billion facility, located on the border of Macau’s Coloan and Kotai Streep districts, continues to struggle to make a profit after being denied permission to move VIP casinos to the lower floors.
He tried to find a buyer for The 13 but was forced to end negotiations with three potential suitors in September after extending the deadline three times. The company reportedly hoped these discussions could recoup about $96.7 million by cutting spending and lowering its stake in the failing hotel by at least 50%.
Wise Park Business Limited has been asked to immediately repay approximately $366.1 million worth of loans it took over from its pre-2018 lender. The creditor also reportedly said it was seeking about $10.1 million in accrued interest, about $44.1 million in default penalties, about $3.6 million in administrative fees and about $734,800 in handling fees.
The move comes a month after the same company ended its bridge loan to South Shore Holdings Limited and demanded the full repayment of the balance reportedly worth about $76.4 million. The Sponsor reportedly exercised its rights under the original loan agreement at the same time to take over the operation of the Lender’s BVI Limited subsidiary, which subsequently agreed to transfer the engineering company to a third party in a contract worth approximately $19.3 million.
“If the company fails to repay the debt within three weeks from the date of service of the statutory claim, the creditor may file a settlement complaint against the company.