Suntrust Home Developers Inc. said the arrest of an executive in its mother company, Suncity Group Holdings Ltd., will not impact the development of its casino complex in the Bagong Nayong Pilipino Entertainment City.
Citing a statement from its mother company, the 51 percent Suncity-owned Suntrust said that save for the risk of Sun City Gaming Promotion Company Ltd. — which is wholly-owned by Alvin Chau, Suncity director — being unable to supply hotel accommodation products to Suncity Holdings and its subsidiaries and the potential risk of loss of financial support, “the issue surrounding Mr. Chau does not have any direct material adverse impact on the financial position, business or operations of the Group.”
“As the group is operated by a team of management personnel, the board of directors of Suncity Holdings does not expect the incident to have a material adverse impact on the daily operations of the group, and as of the date of the announcement, there is no material disruption to the group’s businesses,” Suntrust said.
Chau was arrested by Chinese officials over the weekend for alleged involvement in illegal cross-border gambling and money laundering activities.
Chau, Suncity chairman and non-executive director, has offered to resign from his post in the Suncity Group.
Similarly, as of the date of the disclosures, the board of directors of “Suntrust does not expect that the issue surrounding Mr. Chau will have any direct material adverse impact on the financial position, business, or operations of the company,” Suntrust said.
