PH Resorts Group Holdings Inc (PHR), the casino and leisure firm of businessman Dennis Uy, is taking steps to address its negative equity by converting over P4 billion in cash advances from its parent Udenna Corp. into company shares.
The goal is to bring its equity back into positive territory by the end of 2025, PHR said in a disclosure to the stock exchange Monday.
It said that as of March 31, 2025, PHR had a negative equity of P503.7 million.
PHR plans to increase its authorized capital stock from P8 billion to P15 billion. Once approved, the company will convert P4.09 billion in financial support from Udenna into equity.
This includes P3.37 billion in advances and P718 million in deposits for future stock purchases.
The company said it expects to show a positive equity of P2.86 billion following these corporate actions.
PHR said it would seek shareholders’ approval for the capital increase during its annual meeting slated this week. After that, the company said it would file the necessary paperwork with the Securities and Exchange Commission.
A significant factor contributing to the negative equity is the classification of P4.21 billion in capital infusions from Udenna as a liability.
These capital infusions were booked as advances for future stock subscriptions due to insufficient authorized capital stock.
“This accounting treatment materially impacts the equity position and does not reflect the parent’s continuing financial support and long-term commitment to the company,” PHR said.
The company also incurred significant finance charges following the restructuring of its loan with China Banking Corp. and the development of its flagship resort and casino project in Mactan, Cebu.
PHR is developing the 12.4-hectare Emerald Bay Resort, a project that has faced delays due to financing issues.
Phase 1 of Emerald Bay is envisioned to include 146 gaming tables and 729 electronic gaming machines (EGMs), along with 780 hotel room bays and five villa
