The long-established satellite casino operator "Macau Legend" is facing a critical moment of survival. As its last operating casino in Macau is expected to close by the end of this year, the company is planning to revive itself through a share consolidation and potential future financing, though the market is skeptical about this prospect.
According to the company's announcement, Macau Legend has scheduled a shareholders' meeting on July 30th, proposing to consolidate every 10 shares into 1 share, reducing the total number of shares from 10 billion to 1 billion, and increasing the nominal value from HK$0.1 per share to HK$1 per share. Although the company claims that this consolidation will not affect the asset structure or the shareholders' proportion of holdings, the market generally interprets this move as paving the way for future financing.
Macau Legend admits that although there are no specific financing plans at present, it may seek funds through rights issues or share placements in the future. In fact, the company's financial condition is already alarming: by the end of 2024, bank loans will reach HK$2.07 billion, with shareholder loans exceeding HK$340 million, while cash on hand is only HK$52.3 million.
Earlier this month, Macau Legend just reached a debt restructuring agreement with lending banks, but its ability to continue operations is still questioned by the audit committee. With the dual pressures of terminating casino operations and overwhelming debt, whether this once "legendary" company can turn around through restructuring remains an unknown.
