South Shore says all of its subsidiaries are now insolvent
All subsidiaries of South Shore Holdings, operator of The 13 hotel in Macau, have now gone out of business and are insolvent, with a decision due on the liquidation of the company shortly.
The update on South Shore’s business situation was provided via a filing Thursday following a series of recent developments, including a June request for the liquidation of the subsidiary that owns THE 13, a subpoena to the High Hong Kong Court for Unpaid Debts and Liquidation Order. issued by the Bermuda Supreme Court.
According to the file, the provisional liquidators now have access to the company’s financial information and review it in order to fully understand its position.
However, according to information provided by the former management of South Shore, the company’s subsidiaries “have ceased or are not operating, and all are insolvent”.
The record indicates that the provisional liquidators have made efforts to have discussions with various parties to explore the possibility of a restructuring of the group although no such agreement has yet been reached. The company is also due to hold a first Meeting of Contributors on October 15, 2021 to discuss the liquidation order. Trading in the company’s shares has been suspended since June 25.
Most of South Shore’s woes stem from its failure to realize its vision for THE 13 hotel, located south of the Cotai Strip of Macau.
Imagined by long-deceased President Stephen Hung, THE 13 was designed as a luxury hotel with space for 66 VIP gaming tables aimed at capitalizing on Macau’s booming VIP segment in the early 2010s. That, a series of funding and construction delays saw the property open in September 2018 with no clearance and with a number of unfinished rooms – all at a cost of $ 1.6 billion.