PH Resorts Targets Positive Equity Within Two Years
PH Resorts Group Holdings is aiming to return to positive stockholders' equity within two years through a restructuring that would transfer its interest in PH Travel and Leisure Holdings Corp. to parent company Udenna Corp., according to an updated business plan submitted to the Philippine Stock Exchange on September 22.
PH Resorts reported negative consolidated stockholders' equity of P5.953 billion as of June 30, while equity attributable to parent shareholders stood at negative P478.4 million.
The casino operator's current liabilities also exceeded current assets by about P4.01 billion, with most of the liabilities held at PH Travel and its subsidiaries rather than at PH Resorts itself.
What The Restructuring Involves
Under the proposal, approved in principle by PH Resorts' board on September 4, PH Travel would be transferred to Udenna, with intercompany balances and other obligations settled or reorganized in the process, a move the company says should remove most of the liabilities driving its negative consolidated equity.
The plan remains subject to definitive agreements, legal, tax and accounting reviews, plus stockholder, regulatory and other corporate approvals.
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Overcoming Setbacks
The restructuring follows a string of setbacks, including the Philippine Amusement and Gaming Corp.'s revocation in December 2025 of the provisional license for the Emerald Bay casino project in Mactan, Cebu, and the expiration of an option to repurchase certain Cebu properties under a sale-and-leaseback arrangement, which produced a P6.3 billion noncash loss in 2025. PH Resorts posted a net loss of P80.7 million for the six months ended June 30.
After the restructuring, PH Resorts expects to operate on an interim basis as a listed holding company without active business operations or material liabilities tied to PH Travel, while Udenna continues providing financial support as needed.
The company has also placed a proposal to raise its authorized capital stock to P20 billion from P8 billion on the agenda of its upcoming stockholders' meeting.
