Based on reports from iGB, lenders are planning to take control of Suncity due to Alvin Chau’s alleged failure to uphold their agreement.
Lenders have declared their intention to take possession of Alvin Chau’s assets, potentially including the gambling intermediary company Suncity, because they claim Chau violated a HK$300 million (GBP 29 million/EUR 34 million/USD 38.5 million) loan following his arrest last month.
Lenders intend to seize Suncity due to Alvin Chau’s alleged default on the loan.
Last week, Suncity issued a warning about a potential “change of ownership” after lenders asserted that Alvin Chau had broken the terms of a HK$300 million loan after his arrest last month.
Alvin Chau was among 11 individuals apprehended by Macau law enforcement officials who were accused of establishing an illicit live betting platform in the Philippines, targeting customers from mainland China through Macau’s gambling intermediaries.
Following his arrest, Alvin Chau announced his resignation as chairman of Suncity and Summit Ascent, but he retained his position as the controlling shareholder of the Suncity Group.
After the incident, Wu’s Secretarial Services Limited provided a HK$300 million loan to Alvin Chau’s Xinghun Investment Company on July 30 and sent a “demand letter” to Xinghun.
The letter demanded complete repayment of the loan, along with interest, totaling HK$313.6 million, arguing that the arrest could be considered a breach of the agreement.
Suncity received the letter on December 8 and highlighted the possibility of a change in ownership for the gambling intermediary company, as creditors could pursue Chau’s assets if he is unable to repay the loan.
Today, Suncity received notification that Star Entertainment Group had been contacted by Wu Ke. This communication conveyed that they were “obligated to fulfill the commitments outlined in the security documents, including, but not limited to, the sale, liquidation, transfer, or disposition of all or a portion of the guarantees without prior notice.”
Suncity emphasized that these commitments encompass Zhou焯华’s controlling interest in the VIP room operations, representing a significant 74.9% stake.
However, Suncity also acknowledged that the exact method by which Wu Ke will implement this action remains unclear.
Suncity’s subsidiary, Summit Ascent, which manages the Tigre de Cristal resort located in Vladivostok, Russia, also released a similar announcement.
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