A final settlement between casino operator Donaco International and its former business partners will have to wait a bit more, as the gambling firm revealed that all interested parties have agreed to postpone the settlement until Mega International Commercial Bank (MICG) gives its approval.
For the time being, the MICG is one of the major financial institutions on the territory of Taiwan and also a key lender to the Australia-listed gambling firm. As such, the consent of the bank is required before the agreement or any part of it will come into force.
The chairman of Donaco International, Mel Ashton, praised all parties for their cooperation and further noted that they had also reached an agreement to put off the additional lease payment worth $20 million. Mr. Ashton also shared that the gambling company remained confident it would receive the MICG’s approval for the settlement.
Under a previously-agreed deal, Donaco International is required to settle unpair management fees and some extra lease payments to a group led by its Thai vendors. Furthermore, the removal of a non-compete clause that was included in the initial sale agreement would guarantee that the Thai vendors’ group is now being granted the right to operate a similar gambling business nearby the casino venue, which is already being operated by Donaco in the Thai-Cambordiar border town of Poipet.
Casino Operation Shutdowns of Donaco in Cambodia and Vietnam Extended
The previously-announced settlement put an end to a long-running legal battle between the casino operator and the Thai vendors’ group over the Star Vegas Casino. The dispute between the two parties started several years after Donaco International took over the casino from Somboon’s group in 2015.
Under the initial agreement, the vendors group agreed to continue operating Star Vegas Casino in exchange for $60 million from the venue’s yearly EBITDA (earnings before interest, tax, depreciation and amortization) and 120 million shares. In 2017, Donaco International, however, made a decision not to extend the deal after accusing Somboon and his group of violating the non-compete clause of the agreement by running two casino venues in close proximity to the Star Vegas Casino.
The dispute grew into a fierce legal battle in courts and arbitration panels in Cambodia, Thailand, Singapore and Australia.
Earlier today, Donaco International confirmed that it is to extend the temporary shutdown of the Star Vegas in Poipet, Cambodia in line with the restrictions implemented by the country’s government. The gambling group further noted that it is to extend the shutdown of its gaming operations at the Vietnam-based Aristo International Hotel by seven days. Originally, the announced shutdown initiated due to the coronavirus pandemic had to end on April 15th, but it has now been extended by seven days.
The company also confirmed that the closures of both casino operations in Cambodia and Vietnam because of Covid-19 crisis are expected to have a financial impact on the business. The gambling operator shared that it has already undertaken “pragmatic measures” to cut its costs in order to reduce the impact of the closures to a lower extent.
