Macau Legend Development Ltd, owner and operator of Legend Palace and the Macau Fisherman’s Wharf precinct, says it has reached an agreement with lenders to defer payments on loans amounting to almost HK$2.1 billion (US$268 million) until late 2026, as well as implementing a “loan variation agreement” or payment plan on a loan facility.
The debt restructuring follows auditors previously issuing a disclaimer of opinion on multiple uncertainties relating to the group’s ability to continue as a going concern given the contrast between Macau Legend’s cash and bank balances of HK$52.3 million (US$6.7 million) as of 31 December 2024, and its outstanding loans. These loans include total bank borrowings of HK$2.07 billion (US$264 million) that are either due for repayment within the next 12 months or are repayable on demand, and shareholders’ loans of HK$339.4 million (US$43.2 million) also due within one year or repayable on demand.
Going concern uncertainties have become even more pressing following confirmation last month that the company’s Legend Palace property will no longer be able to operate as a satellite casino from 1 January 2026 onwards.
In a Tuesday filing, Macau Legend said it has successfully agreed upon and executed a loan variation agreement with its bank regarding an outstanding bank loan of HK$85.5 million (US$10.9 million) which defers the repayment of the entire outstanding loan principal to October 2026.
It has also executed a loan variation agreement on the remaining HK$2 billion (US$255 million) owing, which provides for a facility restructuring arrangement including a monthly principal repayment of HK$1 million (US$127,400) for 19 consecutive months from February 2025 to August 2026. The arrangement includes deferral of repayment of the outstanding instalments of the loan principal in default and instalments to be due in 2025 to September 2026, with the remaining outstanding loan principal fully repaid by September 2027 as scheduled and the imposition of supervisory terms for enhanced liquidity monitoring.
“The company and the banks anticipate to commence further negotiations by April 2026 to implement and finalize a long-term resolution for the then outstanding instalments, accounting for any potential impact of the impending revisions to the Macau’s gaming laws and regulations to be effective on 1 January 2026,” Macau Legend said.
It added that a substantial shareholder to whom the company owes HK$205 million (US$26.1 million) – representing 60.4% of total current shareholders’ loans – had provided written financial support confirmation in April stating that no demand for repayment will be made until the Group is capable of repaying the outstanding amounts and that additional financial support may be provided as needed.
Macau Legend stated that, with its short-term debt concerns addressed, it now plans to engage in “proactive discussion” with its auditors to “determine whether the disclaimer can be removed or an unqualified opinion with emphasis of matter can be issued on such basis for the upcoming financial statements as appropriate.”
It also added that the company’s internal Audit Committee had found “no sufficient grounds to disagree with the management’s assessment of the company’s ability to continue as a going concern for the next 12 months, and considered that preparing the Financial Statements on a liquidation basis or a realisation basis would not be justified under the circumstances.”
