Alvin Chau Cheok Wa may lose Suncity Group due to unpaid debts
Alvin Chau Cheok Wa could lose his controlling stake in Suncity Group after his company failed to pay over HK$313.6m (US$40.2m) to a group of lenders.
Macau.- Star Soul Investments Ltd, a company led by Alvin Chau Cheok Wa, has failed to repay a debt of HK$313.6m (US$40.2m) to a group of lenders. Suncity Group Holdings said it had been informed that Cheok Wa’s private holding company had received a letter from the lenders’ legal counsel and Wooco Secretarial Services, the lender’s agent and guarantee agent.
According to the statement, the terms of the loan give Wooco Secretarial Services the power to sell, transfer or otherwise dispose of all or any part of the stake previously owned by Alvin Chau Cheok Wa. However, Suncity Group Holdings noted that the company didn’t have details of how Wooco would enforce the securities pledged by Cheok Wa as a guarantee for the loan.
The shares at stake represent approximately 74.85 per cent of the total issued share capital of Suncity. They’re controlled by an entity called Fame Select Ltd, which is 50 per cent owned by Alvin Chau Cheok Wa and 50 per cent by Zheng Tingkang.
Last week, shares of Suncity Group Holdings and its Summit Ascent division were suspended from trading after having plunged by 48 per cent to HK$0.13 after the arrest of Cheok Wa. Summit Ascent was trading at US$0.15, a drop of nearly 70 per cent.
Suncity to sell business jet to boost liquidity
Suncity Group Holdings Co has recently announced that it will sell a business jet that it bought under two years ago. It will sell the US$10m plane to British-registered Jetcraft Global (UK) Ltd.
Suncity Group said the deal involved a pre-tax loss of approximately HK$1.2m (US$152,800). The company expects to obtain HK$73.3m (US$9.4m) from the sale. The junket operator said the sale would generate “immediate cash”, thereby “enhancing the company’s liquidity position.” The transaction is expected to be completed on December 27.
