The owner of Australia’s The Star casino is in danger of losing A$23m in credit that it granted ten Asian high rollers to attract them to its VIP gaming floor in Sydney.
Asian junket operator SilkStar, responsible for bringing the Asian VIPs to The Star has gone to the wall, forcing The Star to take legal action as it looks to recoup the loss.
Echo Entertainment stated: “Some of the international VIP customers introduced to Echo by SilkStar have outstanding amounts owed to Echo. In light of SilkStar’s liquidation, Echo has also reviewed the prospects of recovery of these balances. Echo has decided to take a prudent approach and increase the impairment provision against this group of customers. As of May 31, 2012, the total write off and impairment provision taken against these customers amounts to $22.9m. Echo will however, continue to vigorously pursue all possible avenues to recover the monies outstanding from these customers. Accordingly, Echo expects the total writedown associated with the liquidation of SilkStar to be $29.9m.”
The total amount owed to The Star by SilkStar is $30m.
Ten lawsuits were lodged on February 27 whilst on June 5 they were listed for directions in the NSW Supreme Court. The 10 high rollers involved in the case are Kok Wah Tee, Nattachai Srirungsukpinij, Somboon Srisombattanakit, Phatsita Kiratiphatthananan, Krairurg Kodcha, Kau Lan, Chin Meng Pun, Vissanu Wiangnak, Pimchaya Wattanakulyothin and Liong Chong Yap.