LET Group pledges control of Summit Ascent to lenders after securing $51m loan – IAG
LET Group Holdings Limited, formerly known as Suncity Group, announced on Monday that it has entered into a loan facility with four independent third-party lenders for the advance of a HK$400 million (US$51 million) loan facility ).
The facility, which will mature on September 18, 2023, will be used to fully repay a promissory note worth HK$380 million (US$48.4 million) and to partially repay the convertible bonds of 2018, both late in August, triggering an event of default. Both are owned by LET Group Chairman Andrew Lo Kai Bong through his wholly owned Major Success Group Ltd.
The partial payment will result in an outstanding 2018 convertible bond of HK$226 million.
According to Monday’s announcement, LET Group has also pledged a total of 3,141,561,811 shares of its controlling subsidiary Summit Ascent Holdings, representing 69.67% of Summit Ascent’s total issued share capital, to lenders as collateral. .
Summit Ascent is the majority shareholder of Oriental Regent Ltd, which owns and operates the Russian integrated resort Tigre de Cristal, near Vladivostok. Tigre de Cristal also represents LET Group’s main source of income given the slow rise of Hoiana in Vietnam and the ongoing development of its other major investment – a hotel and casino in the entertainment city of Manila. .
As previously reported by AGILET Group resumed trading on the Hong Kong Stock Exchange for the first time in more than a month last week after Lo raised its offer price to acquire all of the company’s outstanding shares – as part of a a mandatory bid under Hong Kong’s Takeover Code following it winning a public bid from former Suncity Group lenders to take control of the business.