[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Operator News

Cambodia – Donaco receives approval for settlement of all legal cases for Star Vegas

By - 23 December 2020

Donaco International has secured approval from lender Mega Bank on the settlement of all legal cases for the Star Vegas Resort and Club.

The waiver is in relation to the successful settlement of all legal cases with the Thai Vendor as part of the provisions of a Facility Agreement with the lender.

Donaco stated: “Donaco is extremely pleased of securing this approval as the Company continues to work with Mega Bank and pay down the debt facility under the agreement. The outstanding debt of USD$7.8m is a notable reduction from the initially borrowed amount of USD$100m and the company is on track to repay all the remaining debt in FY21.”

Donaco CEO Lee Bug Huy said: “The settlement has protected Donaco’s cash position, which retired over 80 per cent of the Company’s liabilities, and preserved the Star Vegas business; which is the Company’s primary cash and profit generating asset. 2020 has been a year of changes and challenges for Donaco, both internally and externally. Internally, we’ve had to navigate shareholding and management changes, as well as arbitration proceedings. Externally, the unexpected COVID-19 pandemic significantly impacted our operating environment, which was reflected in our 2020 financial results.

“Whilst executing a prudent cost control strategy, we have taken the opportunity to adjust some of the service provider agreements we had in place. This has resulted in restructuring our gaming machine arrangements, utilising our ample space to introduce retail outlets, and reorganise our arrangements with junket operators for improved outcomes,” he added.

“We have implemented a number of strategic changes to weather the impacts from the pandemic and provide a solid platform for growth for the business. These initiatives include the change in targeted clients as we renew our focus on attracting clientele from the local region to Star Vegas, to in turn reduce our international staff expenses. As announced last week, we are pleased to report that these initiatives have led to two months of positive EBITDA (unaudited) for October and November, of USD$0.54 million and USD$0.8 million respectively for the overall Group. The growing trend has continued into December and the Company is extremely encouraged that since its limited reopening Star Vegas is no longer making a loss and the outlook for our Aristo operation is also increasingly positive.

“We are also proactively exploring other options to access the gaming market and we will update the market on developments in due course. Our strategy for 2021 will build on these pragmatic initiatives, underpinned by a strengthened balance sheet following the recent $14.41m capital raise.”

Located in Poipet, Cambodia, on the border with Thailand, Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1,400 slot machines, and 385 hotel rooms.

Share via
Copy link