Extra $21.5m in bad VIP debts force Iao Kun Group to boost Q2 loss to $125.8m

Macau casino junket investor Iao Kun Group Holding Company (IKGH) has alerted investors that its dire Q2 financial numbers were actually even more dire than originally reported.

Late last month, IKGH announced a net loss of $104.4m in the three months ending June 30. On Friday, IKGH announced that it was boosting these losses by a further $21.5m, bringing the total net loss for Q2 to $125.8m.

IKGH says the extra $21.5m came from a further study of the $159.2m in outstanding VIP debts the company is carrying on its books. IKGH says that the $21.5m is at “an elevated risk of collectability.” IKGH director Jim Preissler said last month that around $40m of its VIP debts were over 180 days outstanding.

IKGH has been in a financial tailspin for the past two years, a downturn that accelerated rapidly in September. The company closed all but one of its Macau VIP rooms and saw its highly publicized acquisition of a South Korean casino come to naught when it couldn’t raise the necessary financing on time.