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IPI parent company claims $350M in unutilized credit
Taitano, Dela Cruz ask why IPI not using money to settle many obligations
The Hong Kong-based mother company of Imperial Pacific International (CNMI) LLC has disclosed that for the year ending Dec. 31, 2020, the company has an unutilized credit facility of $350 million from an independent third party.
According to Imperial Pacific International Holdings Limited’s annual results filed before the Hong Kong Exchange and Clearing Limited and the Stock Exchange for Hong Kong Limited last March 31, the total credit facility amount is $500 million, but $150 million was drawn down during the year ending Dec. 31, 2019.
Imperial Pacific International Holdings said they will draw down the $350 million in unutilized credit facility when necessary.
When the report was filed, the exchange rate for $1 was HK$7.838.
The company also reported net losses of HK$2,853,927,000 and HK$3,904,270,000 for the group (Imperial Pacific International Holdings Limited and its subsidiaries) for the year ending Dec. 31, 2020 and 2019, respectively, and had net current liabilities of HK$9,369,794,000 and net liabilities of HK$2,733,345,000 and capital commitments of HK$512,166,000 as of Dec. 31, 2020.
Despite this, the company reported the group will have adequate funds available to enable it to operate based on the group’s business forecast and cash flow projection.
The company attributed the losses to the adverse impact of COVID-19 pandemic, which has also resulted in the temporary closure of Imperial Pacific International (CNMI) LLC’s casino operation on Saipan since March 17, 2020.
The company said they will contact their lenders and bond and note holders to renew certain other borrowing and unsecured bonds and notes with aggregate principal amount to approximately HK$3,765,237,000 outstanding as of Dec. 31, 2020, which were originally due for repayment in 2021, for extension of the repayment tenure to 2022.
The company said they have undertaken efforts to provide additional funding to settle their operations, liabilities, potential liabilities related to litigation, the casino annual license fee, and the community benefit fund and capital investments.
At the Commonwealth Casino Commission board’s regular monthly meeting last Thursday, citing Imperial Pacific International Holdings Limited’s financial statements, commissioners Mariano Taitano and Ramon M. Dela Cruz questioned why IPI is not using the $350 million to settle all its financial obligations.
