Capital Deficit Response Triggered by Exchange Demands
PH Resorts Group, the gaming and hospitality operator behind the stalled Emerald Bay casino project, has confirmed its intent to eliminate a PHP 500 million ($8.8 million) capital deficit. The disclosure comes in response to a formal request from the Philippine Stock Exchange (PSE), which has asked the company to clarify its long-term financial recovery plan following ongoing losses and operational challenges.
While PH Resorts has not outlined specific measures to achieve the deficit reduction, this public commitment signals a potential turning point in its restructuring strategy. The announcement comes amid growing speculation around a PHP 300 million investment deal from contractor EEI Corporation, reported earlier in January. To date, no official follow-up statements have been released confirming the status of that deal.
Sale of Emerald Bay Marks Strategic Exit from Key Asset
A major catalyst in PH Resorts’ current financial challenges was the 2023 sale of its Emerald Bay integrated resort in Cebu to China Banking Corporation, structured under a lease-back and buyback option as part of a broader debt restructuring. The move was initially framed as temporary, with the expectation that the resort’s development would continue under PH Resorts’ oversight.
However, subsequent attempts to sell the project to Okada Manila collapsed without resolution.
By May 2025, Chinabank officially listed the Emerald Bay property and land for sale, effectively ending PH Resorts’ relationship with the development. In response, the company cited its focus on “other ongoing projects,” indirectly confirming a withdrawal from Emerald Bay.
Financial Struggles Continue, With Signs of Stabilization Elusive
During the first half of 2024, PH Resorts reported a net loss of PHP 494.3 million, adding further pressure on the operator to present a viable financial recovery plan. With the PSE pushing for transparency and the Emerald Bay saga nearing conclusion, the company must now navigate investor confidence, debt resolution, and potential strategic partnerships.
If confirmed, the EEI investment could provide critical short-term liquidity, but the lack of clarity on asset development, revenue projections, and future resort initiatives continues to cast doubt on the company’s long-term viability.
Outlook
In light of its public deficit reduction pledge, PH Resorts appears poised for a restructuring phase that may include new investors, asset consolidation, and a redefined business model. However, until a detailed plan is published, the company remains under scrutiny from regulators, creditors, and shareholders alike.
