Cambodia – A casino operator in Cambodia, with an establishment located on the border between Thailand and Cambodia; Donaco International Ltd, confirms financial struggles and is seeking financing options to help support the company’s financial obligations during a difficult period.
Donaco International Ltd, which operates the Star Vegas Resort and Club and also Aristo International Hotel and Casino in Vietnam, has been severely negatively impacted by the spread of coronavirus.
Mel Ashton, chairman of Donaco International Ltd commented on the news:
“The board is aware that the liquidity of the company may tighten from the closure of the border crossing between China and Vietnam in January due to the outbreak of Covid-19 [coronavirus].”
Ashton expanded on the reports that it is seeking financial help:
“Donaco is seeking to access financing to support payment obligations and working capital requirements of the company. We expect these conditions to continue until travel restrictions are removed and will tightly manage expenses at the venue throughout this period. The impact is far less noticeable at Star Vegas, although we will also take a cautious approach at that venue and keep a tight rein on expenditure. We will tightly manage our expenses over this period until normal border operations are restored.”
Paul Arbuckle, the firm’s chief executive officer also shared his views on why the company is taking such action:
“The impact of Covid-19 during February has been significant on the Aristo, as visitation has dropped significantly with travel from China being curtailed.”
The news comes just hours after the Cambodian government warned that ‘about 200 factories… will probably have to slow or cease production entirely due to a lack of raw materials’ and in Vietnam ‘manufacturers are experiencing difficulty in acquiring supplies and materials due to disruptions from the virus’.