Macau Legend Development says it continues to engage in discussions with its lenders for the extension of loan repayment terms as it seeks to stay afloat.
The company on Monday reported a HK$136.8 million (US$17.5 million) loss in 1H26, narrowed from the HK$1.42 billion (US$181 million) loss reported a year earlier. With the company’s satellite casino at Legend Palace on the Macau peninsula having ceased operations late last year, revenue from continuing operations grew by 2.7% to HK$172.7 million (US$22.0 million) while Adjusted EBITDA turned positive at HK$8.8 million (US$1.1 million).
Nevertheless, there remain multiple going concern uncertainties, with Macau Legend holding just HK$37.9 million (US$4.8 million) in cash and bank balances as of 30 June 2026 while total bank and other borrowings sit at HK$2.39 billion (US$305 million). Those borrowings fall due for repayment within the next 12 months.
Macau Legend said that due to non-compliance of certain loan covenants, its outstanding bank borrowings have become immediately repayable if demanded by the creditor banks, although not such demand has been issued at this stage.
It also noted that the 2024 sale of the group’s Laos casino, Savan Legend, resulted in a breach of a covenant under a separate group banking facility which again could see those lenders demand immediate repayment of all outstanding borrowings.
In response, the company said, “During the six months ended 30 June 2026, management continued discussions with the banks regarding the non-compliance with loan covenants and the extension of repayment dates for the loan principal in default and upcoming instalments.
“The Group has applied to the Banks for the waiver for the non-compliance of financial covenants as at 30 June 2026. A debt restructuring arrangement has been agreed in principle by both the banks and the Group in August 2026 in respect of the rescheduling of repayment dates and revision of certain key terms of the relevant bank borrowings.
“As of the date of this announcement, a formal agreement is pending execution.”
Macau Legend added that previous loan variation agreements entered into with its banks remain in effect and that the banks still reserve the right to demand immediate repayment at any time.
On its ability to meet its obligations, the company said it is “aware of the current weak economic conditions, which may adversely impact the personal financial position and liquidity of certain of the company’s substantial shareholders, and consequently their ability to provide further financial support to the Group for meeting its financial obligations.
“Up to the date of approval of these condensed consolidated financial statements, notwithstanding that the Group has not received any demand for immediate repayment of the Group’s remaining bank borrowings … the Group does not currently have sufficient financial resources to fulfil its obligations if the banks take actions against the Group to exercise their rights to demand immediate repayment of the Group’s outstanding borrowings.”
Macau Legend’s auditor said it is unable to form a conclusion as to whether the going concern basis of preparation is appropriate but warned that should the company be unable to fulfil its action plans it “may not be able to continue to operate as a going concern and adjustments would have to be made to write down the carrying values of the Group’s assets to their recoverable amounts.”
Macau Legend is owner of the Macau Fisherman’s Wharf Precinct and continues to run Legend Palace as a non-gaming resort.
