{"id":29537,"date":"2022-05-04T07:09:13","date_gmt":"2022-05-04T10:09:13","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=29537"},"modified":"2026-04-23T09:02:53","modified_gmt":"2026-04-23T12:02:53","slug":"sjm-holdings-could-access-us637m-loan-from-shareholder-stdm","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-could-access-us637m-loan-from-shareholder-stdm","title":{"rendered":"SJM Holdings could access US$637m loan from shareholder STDM"},"content":{"rendered":"\n

The casino operator continues to face a critical financial situation and could seek a loan from its largest shareholder to confront liquidity problems.<\/p>\n\n\n\n\n\n\n\n

Macau.- A day after posting\u00a0a loss of HK$1.28bn (US$163.4m)<\/a>\u00a0<\/strong>for the first quarter of the year, SJM Holdings has revealed it could access a HK$5bn (US$637m) loan from controlling shareholder STDM. However, Sanford C. Bernstein noted that no details have been provided about the possible arrangement.<\/p>\n\n\n\n

They said: \u201cManagement also confirmed that\u00a0there is no gaming regulator or government approval<\/strong>\u00a0in terms of the potential shareholder loan nor is any bank covenant limiting the ability to draw funds from STDM.”<\/p>\n\n\n\n

Analysts Vitaly Umansky and Louis Li noted that the company only has liquidity for three to four months and pointed to the opening of the Grand Lisboa Palace in June 2021 as a cause of economic difficulties.<\/p>\n\n\n\n

SJM reported that gross gambling revenue for the first quarter of the year fell 4.2 per cent year-on-year to HK$2.54bn. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) came in at negative HK$474m.<\/p>\n\n\n\n

JP Morgan<\/a> has warned SJM Holdings\u2019 loan refinancing has stalled due to government delays, which will likely require the company to seek external funding, either through debt or capital. Meanwhile, due to Macau\u2019s proposed ending of\u00a0the current sub-concession system<\/strong>, SJM will have to bring gaming staff at 14 satellite casinos onto its own payroll.<\/p>\n\n\n\n

JP Morgan stated: \u201cThis could lead to an additional operating expenses burden for SJM Holdings in the second half of 2022, as it may need to convert some staff \u2013 i.e., the staff from satellite casinos that decide to cease gaming operations \u2013 onto its direct payroll.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The casino operator continues to face a critical financial situation and could seek a loan from its largest shareholder to confront liquidity problems.<\/p>\n","protected":false},"author":176,"featured_media":15644,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"SJM Holdings faces severe liquidity challenges, reporting a HK$1.28bn Q1 loss and potentially seeking a HK$5bn loan from its controlling shareholder, STDM. The operator's financial strain is exacerbated by the Grand Lisboa Palace's performance and stalled loan refinancing. Furthermore, impending regulatory changes in Macau will necessitate SJM absorbing staff from 14 satellite casinos, increasing operational expenditure.","focusai_entities":"SJM Holdings, STDM, Sanford C. Bernstein, Vitaly Umansky, Louis Li, JP Morgan","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.95), regulator (0.9), compliance_legal (0.85), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"SJM Liquidity Strategy","query":"What specific covenants or conditions are attached to the potential HK$5bn shareholder loan from STDM, and how will this impact SJM Holdings' long-term capital structure and debt servicing capacity?"},{"label":"Macau Regulatory Impact","query":"Beyond the direct payroll burden, what are the broader implications of Macau's sub-concession system termination on SJM Holdings' operational flexibility, market share, and future licensing negotiations?"}],"footnotes":""},"categories":[157,16338,158],"tags":[23108],"class_list":["post-29537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","category-slider-home","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/29537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=29537"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/29537\/revisions"}],"predecessor-version":[{"id":29559,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/29537\/revisions\/29559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/15644"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=29537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=29537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=29537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}