Continuing financial troubles for South Shore Holdings Limited

The owner of Macau’s luxury The 13 hotel has reportedly applied to have its wholly-owned New Concordia Hotel Limited subsidiary placed into voluntary liquidation with paid-up assets of approximately $3,120.

According to a report from Inside Asian Gaming, the subordinate is responsible for the operation of the 200-room hotel property with the move from its Hong Kong-listed South Shore Holdings Limited parent having come only a day after the lesser enterprise was forced to cease trading.

High hopes:

South Shore Holdings Limited was previously known as Louis XIII Holdings Limited until undergoing a 2016 name-change and reportedly premiered The 13 some 35 months ago as ‘the most luxurious hotel in the world’. However, the $1.6 billion facility located on the border between Macau’s Coloane and Cotai Strip districts has continuously struggled to turn a profit after being denied permission to bring a VIP casino to its lower floors with subsequent efforts to offload the enterprise proving fruitless.

Parental problems:

Inside Asian Gaming reported that South Shore Holdings Limited suspended the trading of its own shares last month after detailing that it expected to record an aggregated deficit of around $122.3 million for the twelve months to the end of March. The source explained that this was followed by news that one of the company’s largest creditors had filed a statutory demand for the immediate repayment of an outstanding debt believed to be worth in the region of $422.8 million.

South Shore Holdings Limited reportedly moreover lost control of the Paul Y Engineering Group Limited arm of its The 13 (BVI) Limited subsidiary in May after a second creditor terminated the renewal of an ongoing bridge loan and began demanding the settlement of an obligation valued at around $76.5 million.

Supposed scraps:

Although it remains unclear as to how this latest move from South Shore Holdings Limited will impact the future of The 13, the company reportedly used an official filing to assert that it intends to distribute the assets of New Concordia Hotel Limited among its shareholders ‘after the debts and liabilities of the subsidiary are settled’.

Reportedly read a statement from South Shore Holdings Limited…

“The board will assess and seek further and appropriate legal advice on the impact of the voluntary liquidation.”

Paltry product:

New Concordia Hotel Limited has itself reportedly managed to raise some funds over the past year via the sale of a large part of its 30-strong fleet customized Rolls-Royce Phantom automobiles, which were purchased in 2016 at a cost of roughly $20 million. The beleaguered unit purportedly brought in $24 million last summer by offloading 24 of these units before disposing of a sole car in April to earn itself another $450,000.