Donaco states Star Vegas dispute ‘formally concluded’

Jan 12, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck  

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Donaco International Ltd, an Australia-listed operator of several border casinos in Southeast Asia, said in a Monday filing that what it termed “the dispute” relating to the Star Vegas Resort and Club (pictured), Donaco’s Cambodian casino venue, had been “formally concluded”.

In late December, Donaco announced to the Australian Securities Exchange that it had gained approval from key lender Mega International Commercial Bank Co Ltd, known as Mega Bank, on the casino firm’s “settlement of all legal cases” with third parties – referred to previously as “the Thai vendor” – relating to the Cambodia property located at Poipet, on that country’s border with Thailand.

The Thai party became last year a significant shareholder in Donaco, following a series of changes in the firm’s ownership structure, linked to a fundraising exercise by the company.

“The company wishes to thank all parties in reaching this settlement,” stated Donaco in its Monday filing.

“In addition, as recently detailed… the business has continued to improve to a positive EBITDA [earnings before interest, taxation, depreciation and amortisation] as impacts from Covid-19 have moderated from earlier extreme levels,” said Donaco.

The operator further noted: “The company’s debt has been reduced significantly and a solid platform for growth is now emerging.”

Donaco’s other Asian casino hotel, Aristo International, is at Lao Cai, on Vietnam’s border with China.

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