SGV & Co. said these losses indicated a “material uncertainty” that might cast “significant doubt” on the ability of Winford, under MJC Investments (MJIC), to continue as a going concern.

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MJIC posted losses of P752.3 million in 2019 (largely due to the non-renewal of the junket agreement between MJIC’s Trafalgar Square Leisure and Philippine Amusement and Gaming Corp.), P562.7 million in 2020, and P330 million in the first half of 2021.

Since the outbreak of COVID in March 2020, Winford’s casino, PAGCOR San Lazaro, has only been allowed to operate at 30 percent to 50 percent capacity (excluding full lockdown under enhanced community quarantine).

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Winford’s hotel resumed operations in June 2020 after a three-month shutdown but it has so far been limited to quarantine guests and front line workers with leisure booking still banned.

Due to its mounting losses, MJIC’s capital deficiency increased to P512.6 million as of 30 June 2021 with its current liabilities exceeding current assets by P667 million.

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MJIC’s management led by chairman and CEO Reyno has moved to cut the firm’s expenses, boost marketing to increase foot traffic in Winford, and explore new business opportunities.

To raise cash for working capital and loan payments, MJIC has initiated talks for the deferment of advances by stockholders and related parties, waiver of management service fees, and extension of P400 million credit line facility by a local bank.

MJIC said a local bank, which it did not identify, approved its request for a deferment of principal payments on its P2.3 billion loan from July 2021 to January 2023, including waiver on loan covenants.

The post Material uncertainty: SGV flags Boy Reyno’s Winford casino-hotel for amassing P1.6B losses since 2019 first appeared on Bilyonaryo Business News.