Sunlight City releases a “Shift in Control” alert as Alvin Chau supposedly breaks a loan pact – iGB
Alvin Chau’s Star Soul Investment Company is said to have broken a loan deal worth HK$300 million (£29 million/€34 million/$38.5 million), which could lead to the lender taking over his ownership in gambling operator Sunlight City.
Sunlight City, along with its subsidiary Summit Ascent, which operates the Tigre de Cristal resort in Vladivostok, Russia, issued a similar notification.
Chau was one of 11 individuals apprehended in Macau on November 27th as authorities investigated a cross-border illegal gambling ring.
Following his capture, Chau declared he would step down as chair of Sunlight City and Summit Ascent, but would remain the controlling owner of the Sunlight City Group.
The group is alleged to have established an illegal live betting platform in the Philippines, drawing in customers from mainland China through Macau’s junket operators. The group then supposedly used local bank accounts to transfer operating income.
After the event, Wuke Secretarial Services, which provided a HK$300 million (£29.1 million/€34.1 million/$38.5 million) loan to Chau’s Star Soul Investment Company on July 30th, sent a “demand letter” to Star Soul.
The letter requested full repayment of the loan, plus interest, totaling HK$313.6 million, arguing that the arrest could be considered a violation of the agreement.
Suncity obtained this missive on the eighth of December.
Suncity underscores that Star Entertainment is not a constituent of the Suncity Group, but Alvin Chau is identified as a guarantor for the loan. Consequently, the 74.9% interest in Suncity held by Fame Select Limited, jointly owned by Alvin Chau and Zheng Tingkang, might be sold or otherwise disposed of. Suncity observes that other assets potentially in jeopardy include corporate bonds held by Fame Select.
“If not satisfied, suitable action will be taken against the debtor without further notification, encompassing (but not limited to) legal action against the debtor to recover the aforementioned sum and all related charges, expenses, and costs,” Suncity declared.
“As of the date of this announcement, the Company lacks information regarding how Wu Ke will manage the aforementioned securities when Wu Ke executes the aforementioned securities,” Suncity stated. “Wu Ke’s execution of the aforementioned securities may lead to a change of control of the Company.”
Upon learning of the default, Suncity halted trading of its shares on the Hong Kong Stock Exchange yesterday (December 9th), but the business will resume trading on Monday (December 13th) as these particulars are disclosed. When trading was suspended, Suncity’s share price was HK$0.14, half the price it was trading at prior to Alvin Chau’s apprehension.
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