Suncity to sell business jet to boost liquidity

Suncity Group Holdings has been affected by the arrest of Alvin Chau Cheok Wa.
Suncity Group Holdings has been affected by the arrest of Alvin Chau Cheok Wa.

Suncity Group Holdings has announced it will sell a business jet that the company acquired fewer than two years ago.

Macau.- Suncity Group Holdings Co has 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.

It’s emerged that Suncity could change hands if one of its CEO’s companies doesn’t repay a debt in full. Cheok Wa’s Star Soul Investments Ltd reportedly had until midweek to repay HK$313.6m (US$40.2m). If it fails to pay, the 4.99m Suncity Group shares pledged by Cheok Wa as a loan guarantee may change hands to cover the debt.

The shares, which represent approximately 74.85 per cent of the total issued share capital of Suncity, are 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. If these shares flow to the lender, it may result in a change in the control of Suncity Group Holdings.

Last week, shares of Suncity Group Holdings and its Summit Ascent division were suspended from tradingSuncity stocks had plunged by 48 per cent to HK$0.13 after Cheok Wa’s arrest. Summit Ascent was trading at US$0.15, a drop of nearly 70 per cent. 

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