Asian leisure and hospitality firm; Donaco International Limited, has today agreed a settlement deal of an ongoing dispute at one of its gaming properties following the recent announcement that its request had been granted to prevent the former Thai partners from selling their shares in the business.
The request was granted by the Supreme Court of NSW to extend the freezing order until May 2020.
Following mediation talks with the Thai vendors of its Star Vegas establishment in Cambodia, Donaco International Limited has finally settled on a deal that sees all legal proceedings ended and a lease renewed on the property for almost 100 years.
Although it is unclear on all of the reasons why and how the deal was agreed upon, it is believed that a major part in the decision was so that the gaming venue could continue business operations.
Reportedly, the deal is worth an estimated $240k per year in the first five years and $360k per year for the remaining five years.
A spokesperson for Donaco International Limited explained why the firm settled on such deal:
“The settlement reached provides certainty of tenure for the Star Vegas business and will conclude all disputes between the parties. It will also allow the Company and management to now focus on the forward momentum of the profitable Star Vegas business, and continued improvements to the Company’s balance sheet and financial position ahead of any COVID-19 impacts to second half revenue and earnings.”
The spokesperson added:
“The economic interests of the Thai Vendors are also aligned with the Company through their escrowed equity position in Donaco and the restructured lease agreement. No net change to the cash position of the Company will eventuate from the settlement.”