Century Entertainment looking to have disclaimer of opinion over financial state removed on support of Chairman and CEO Ng Man S

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Hong Kong-listed Century Entertainment International Holdings Ltd said it is considering withdrawing its auditors’ opinion for the year ending March 31, 2024, due to assurances given by its major shareholder and chairman Ng. Man Sun.

Century Entertainment, which has been waiting to launch a table games business at a new casino in Cambodia’s Dara Sakor, said it was taking steps to improve its debt obligations and its ability to continue as a going concern. The liquidity and financial position of the group, the validity of the going concern based on the results of these measures.

Although it has a net liability position of HK$67.5 million due to loans and convertible bonds as of March 31, 2023, the company explained that this will not have a significant financial impact on the company in the year ended. March 2024.

It is listed, because Ng promised not to call to pay HK$54.7 million in loans given by him; that it will continue to provide additional funding as needed until at least June 30, 2024; that a total of HK$36.2 million will be provided as a personal guarantee on loans due to exempt third parties; and to convert the HK$50 million convertible bond into equity shares.

Century Entertainment said there is “no urgency for the company to pay back” although an agreement with the table games business, which saw the company take profits from eight gaming tables at the Dara Sakor casino, is still not in effect. The current debt is personally verified by Mr Ng. In addition, Mr. Ng is willing to retain the funding for the group’s working capital purposes.

The company added that if the auditors agreed with the action plan to address the debt, including the restructuring of external debt with creditors, “the proposed action plan will be implemented in 2018.” It will result in the elimination of the opinion lawsuit that ends on March 31, 2024.

The Directors believe that the Group will have sufficient working capital to support its operations when it commences its gaming table business.

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