Philippines-listed PH Resorts Group Holdings Inc has said that “restrictions” related to dealings with a previous party for investment in its stalled Emerald Bay casino resort project (pictured in an artist’s rendering) in Mactan, Cebu, are preventing the company from being able to “formalise” matters with other suitors.

PH Resorts said in its second-quarter results filed with the Philippine Stock Exchange on Wednesday: “Other parties which have already expressed their keen interest in the Emerald Bay project… have been unable to formalise due to the restrictions under the TRLEI deal.”

The latter reference was to Tiger Resort, Leisure and Entertainment Inc (TRLEI), a unit of Japan’s Universal Entertainment Corp, which already promotes the Okada Manila casino complex in the Philippine capital.

PH Resorts’ update confirmed that one of its units had received the “non-refundable” sum of PHP327.6 million (US$5.7 million) from TRLEI up to June 30, and before talks were broken off as announced in early July. The amount had been part of “advances for future stock subscription,” that would have seen TRLEI take majority control of Emerald Bay.

PH Resorts, led by Philippine entrepreneur Dennis Uy, also reiterated regarding the scheme: “Strategic investor discussions are ongoing with several parties. Due diligence is ongoing and in various stages of completion.”

Year-on-year, the company narrowed its first-half net loss. For the six months to June 30 this year, the net loss was PHP494.3 million, compared to PHP1.08 billion a year earlier. The persisting loss was “primarily due to pre-development expenses”.

Its first-half deficit actually rose 98.4 percent year-on-year, to PHP7.32 billion, from PHP3.69 billion.

PH Resorts once again flagged a “going concern” risk. The group’s current liabilities exceeded its current assets by PHP12.33 billion as of June 30, as compared to PHP4.15 billion in the first half of 2023.

The company had negative operating cash flow amounting to PHP97.2 million in the first six months this year, versus PHP27.0 million in the prior-year period.

“These conditions indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern,” it noted.