Lenders are preparing to take control of Alvin Chau’s possessions, including the gaming brokerage firm Suncity, because they claim he has failed to pay back a HK$300 million (GBP 29 million/EUR 34 million/USD 38.5 million) loan following his apprehension last month.
Last week, Suncity released a notice of a potential “change of ownership” after lenders asserted Chau had broken a HK$300 million loan agreement subsequent to his arrest last month.
Chau was among 11 individuals detained by Macau law enforcement for allegedly creating an illegal live betting platform in the Philippines that attracted patrons from mainland China through gambling agents in Macau.
After his detention, Chau declared he would resign as chairman of Suncity and Summit Ascent, but he remains the majority shareholder of Suncity Group.
Following the event, Wooco Secretarial Services sent a “demand letter” to Chau’s Star Soul Investments company. The company provided HK$300 million to Star Soul on July 30.
The letter requested repayment of the entire loan principal and interest, totaling HK$313.6 million, arguing that the arrest could be considered a violation of the loan agreement.
Suncity received the letter on December 8 and indicated that this could result in a change of ownership for the gambling brokerage firm, as lenders may attempt to recover Chau’s assets if he is unable to repay.
On this day, Suncity was informed that Star Entertainment Holdings had received a fresh communication. In the message, Wooco declared, “We are compelled to execute the guarantees outlined in the guarantee documents, encompassing but not limited to selling, realizing, transferring, or otherwise disposing of all or a portion of the collateral without prior notification.”
Suncity highlighted that these guarantees encompass the 74.9% ownership held by Alvin Chau in the VIP room operations.
Nevertheless, Suncity also indicated that there is presently no information regarding how Wooco will implement this action.
Suncity’s subsidiary, Summit Ascent, also disseminated the same notification. The company manages the Tigre de Cristal resort located in Vladivostok, Russia.
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