Lender Approval Received for Star Vegas Settlement
Sydney, Dec 22, 2020 AEST (ABN Newswire) - Donaco International Limited (
ASX:DNA) (UGS:FRA) is pleased to announce securing the approval from lender Mega Bank on the settlement of all legal cases for the Star Vegas Resort and Club ('Star Vegas').
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 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$7.8 million is a notable reduction from the initially borrowed amount of USD$100 million and the Company is on track to repay all the remaining debt in FY21.
For covenants under the Mega Bank Facility, the minimum cash requirement has been lowered to USD$7.8 million from AUD$20 million. The interest cover and debt ratio covenants are not required to be tested as at 31 December, and will only be tested as at 30 June (year end of each period). As such there are no remaining effective interest cover and debt ratio covenants, assuming Donaco will repay the last payment on June 2021.
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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