Imperial Pacific International (IPI), a Hong Kong-listed company, has belatedly released its financial results for the first half of 2022 as it faces the threat of delisting from the Hong Kong Stock Exchange. The release of interim results was a requirement set by the exchange in its Resumption Guidance issued in late 2022. While IPI claims compliance with most guidelines, it grapples with challenges, notably Rule 13.24, which demands a sufficient level of operations and assets to support listing. The company’s lone asset, the Saipan casino Imperial Palace • Saipan, has been closed since March 2020, and its casino license suspended since April 2021.
Current Challenges:
IPI confronts a cascade of difficulties, including the looming threat of license revocation by Saipan’s casino regulator and a winding-up petition filed by a creditor. Despite the withdrawal of a second winding-up petition, the company seeks legal advice to address these challenges. IPI is actively exploring options, such as proposing a debt restructuring plan and attracting potential investments to raise funds.
Request for Delisting Decision Deferral:
In light of the challenging circumstances, IPI has formally requested a deferral in the decision regarding its delisting from the Hong Kong Stock Exchange. This move is indicative of the company’s efforts to navigate its financial turmoil and explore potential avenues for recovery.
Financial Performance for 1H22:
The financial results for the first half of 2022 paint a grim picture for IPI. The company reported a widened loss attributable to owners of HK$487 million (US$62.3 million), compared to a HK$359 million (US$45.9 million) loss in the same period the previous year. These figures underscore the financial strain faced by IPI in the wake of the prolonged closure of its Saipan casino.
Gross Trade Receivables and Financial Obligations:
As of June 30, 2022, IPI’s gross trade receivables accrued to a staggering HK$9.164 billion (US$1.17 billion). This substantial financial obligation adds to the complexity of the company’s financial woes, raising concerns about its ability to meet its obligations.
Legal and Regulatory Challenges:
The specter of a license revocation hearing adds another layer of uncertainty to IPI’s future. The company’s compliance with Rule 13.24 remains a key point of contention, given the suspension of its casino license and the prolonged closure of its primary asset. Legal proceedings, including the winding-up petition and potential license revocation, pose significant challenges that IPI must navigate to secure its future in the Hong Kong Stock Exchange.
Strategic Measures and Recovery Efforts:
In response to these challenges, IPI is actively seeking legal advice to address the pending legal issues. The company is exploring various rescuing and releasing measures, including proposing a debt restructuring plan to creditors and seeking potential investments to inject much-needed funds. These strategic initiatives reflect IPI’s determination to weather the storm and emerge stronger from its current financial predicament.
Imperial Pacific International’s struggle to avoid delisting unfolds against a backdrop of financial difficulties, legal challenges, and regulatory hurdles. The company’s request for a deferral in the delisting decision underscores the severity of its predicament. As IPI navigates these turbulent waters, its ability to implement effective recovery strategies and secure the necessary financial support will shape its future on the Hong Kong Stock Exchange. The financial results for the first half of 2022 serve as a stark reminder of the urgent need for decisive action and strategic planning to ensure the company’s viability and resilience in the face of adversity.