Progress Update on Settlement with Thai Vendor
Sydney, Mar 27, 2020 AEST (ABN Newswire) - Donaco International Limited (
ASX:DNA) (UGS:FRA) is pleased to provide an update on the progress of the settlement of litigation over the Star Vegas business as announced to the ASX on 3 March 2020 (refer ASX announcement "Conclusion of negotiations and settlement with Thai Vendor and DNA Star Vegas lessor").
To date, the settlement parties have submitted withdrawal requests to the relevant courts and authorities. The Company is awaiting judgement from courts and confirmation from authorities to fulfill the conditions stated in the settlement agreements.
Donaco, DNA Star Vegas Co Ltd and Donaco Hong Kong Limited are party to a Facility Agreement with Mega International Commercial Bank Co Ltd (Mega Bank). Provisions of the Facility Agreement require the Company to obtain Mega Bank's consent to fulfil parts of the settlement agreements outlined below:
1. Payment of any outstanding rent and USD $20 million to Lee Hoe Property; and
2. Removal of non-competition clauses in the Share Sale Agreement.
Donaco is in discussion with Mega Bank and has sought the consents required. Donaco remains confident that Mega Bank will support the settlement reached with the Thai Vendors and the continuation of the Star Vegas Casino.
About Donaco International Ltd
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex 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 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
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