Macau's Suncity confirms loan default by associate of controlling shareholder (updated)

LET group

10/12/2021 14:02

(Adds details on loan agreement, background)
    Dec 10 (Reuters) - Macau's Suncity Group Holdings Ltd
 1383.HK  said on Friday that a company led by its controlling
shareholder was served with a demand letter alleging a default
had occurred under a loan agreement.
    The loan taken on by Star Soul Investments was guaranteed by
Chau Cheok Wa, the owner of the company, and also a controlling
shareholder of Suncity. 
    Chau had resigned as chairman and chief executive officer of
Suncity after being arrested last month over alleged links to
cross-border gambling, with his junket operations closing all of
its VIP gambling rooms in Macau in the wake of his arrest.
 urn:newsml:reuters.com:*:nL1N2SM028
    The letter demanded a full repayment of the loan of HK$313.6
million ($40.21 million) from Star Soul within five business
days from Dec. 8, Suncity said in a statement https://bit.ly/3ENIAik.
    If Wooco Secretarial Services Ltd, an agent acting on behalf
of a syndicate of lenders, legally enforces repayment of the
loans, it may lead to a change in control of Suncity, the
embattled gambling group added.
    Shares of Suncity and its unit Summit Ascent Holdings Ltd
 0102.HK  went on trading halts on Dec. 9, pending statements on
the possible loan default. The companies have made applications
to resume the trading of their shares on Hong Kong Stock
Exchange on Dec 13.
    
    
($1 = 7.7998 Hong Kong dollars)

    
    

 (Reporting by Yamini C S in Bengaluru; Editing by Amy Caren
Daniel)
 ((Yamini.CS@thomsonreuters.com;))