An auditor at Macau Legend Development expressed concern about the business’s ability to survive as a going concern in its long-term delay annual report.
In the report, Macau Legend’s board said there was no significant risk of questioning the future of the business.
“The Board of Directors is unaware of the material uncertainty associated with events or circumstances that could raise serious doubts about the company’s ability to survive as a going concern,” the board said.
However, Ernst & Young’s report by the Independent Auditor was in some way inconsistent with what the board said after listing the size of the current debt the business is facing.
“These conditions, along with other matters described in Note 2.1 of the Consolidated Financial Statements, indicate the existence of significant uncertainty that could raise serious doubts about the Group’s ability to survive as a going concern. “I will,” said the auditor.
They state that the survival of the company depends on the creditor agreeing to amend the loan terms or otherwise extend the current exemption of the loan agreement.
Macau Legend has been hit by a series of crises, especially in January of this year, when Chan Weng Lin, the company’s former CEO, was arrested and accused of running a “triad organization.” ..
The report also mentioned significant losses, even during the period when Macau was not blocked. Compared to a loss of HK $ 429.3 million last year, the annual adjusted EBITDA was a loss of HK $ 303 million, a period during which there was no blockade in Macau.
SAR casinos will be closed for the time being and losses will almost certainly increase.
