Robert Kuok’s Shang Properties breaks debt pact with banks, including P10B loan for Shangri-La at the Fort

This includes the P10 billion loan it obtained to build the Shangri-La at the Fort’s hotel and residences at the Bonifacio Global City.

READ: Shangri-La Group couldn’t afford Makati hotel’s annual rent of P300M; Ayalas keen on retaking property

Based on its financial reports, SPI said it breached its loan covenant with a local bank which it did not name on the P10 billion loan Shangri-La at the Fort loan, specifically its debt to tangible net worth and debt service coverage ratios as of end 2020.

But SPI said it was able to “was able to secure a waiver from the bank on the immediate declaration of the loan as due and demandable.”

The 10-year loan facility was signed in 2012 and was used to build the hotel, serviced apartments and residential units (Horizon Homes) on SPI’s 1.5-hectare lot in BGC. The loan is secured by an absolute and unconditional continuing suretyship by Kuok’s Shangri-La Asia Limited and SPI.

SPI, which is chaired by Kuok’s nephew Edward Kuok Khoon Loong, said it also obtained a waiver on its P5 billion loan after it failed to fall within the debt service coverage ratio requirement of its loan agreement. SPI has so far used up P3.7 billion of the 10-year loan facility it obtained in 2012.

SPI’s revenues plunged by P5.14 billion or 5 percent to P6.22 billion in 2020 of which roughly came from the P2.5 billion drop in hotel revenues due to low occupancy at the Shangri-La Hotel at Fort due to coronavirus restrictions.

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