SGV expresses doubt on PHR’s ability to continue as a going concern, loans from China Bank (CHIB) totaled 5.9 billion

The venerable auditing firm, SGV, expressed significant doubt on PH Resorts Group Holdings (PHR)’s ability to continue as a going concern. SGV drew attention to the consolidated financial statements of PHR which indicates that it incurred a net loss of 342.3 million Pesos in 2020 resulting to a deficit of 1,022.7 million Pesos as of 31 December 2020. In addition, PHR’s current liabilities exceeded its current assets by 7,502.8 million Pesos as at 31 December 2020.

The balance sheet of PHR as of 31 December 2020 showed total current loans payable of 6,878.3 million Pesos. Of that loans payable, 5,910.9 million Pesos were from China Banking Corporation (CHIB).

On 14 May 2020, CHIB approved the extension of payment of principal and interest of the loans to 18 June 2020 under Republic Act No. 11469 or the Bayanihan to Heal as One Act. In 2020, under the Republic Act No.11494 or the Bayanihan to Recover as One Act, the loan was rolled over until 18 December 2020. CHIB further extended this loan to 18 March 2021. As of 19 April 2021, the negotiation for further extension of this loan is in process. The carrying value of properties used as collateral amounted to 12.3 billion as of 31 December 2020.

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