The Australian Silver heritage group involved in negotiations with the Phoenix International Club in Vietnam due to difficulties with its “investment certificate” has finally reached an amicable settlement. The negotiation has been settled at $5.2 million.
The terms of the negotiation have also been defined. The entire amount will be paid by Silver Heritage group in two different installments. The amount to be paid to the Phoenix International is estimated to be worth two years of the EBITDA generated by the club.
According to Silver Heritage, the settlement will bring it a loss of $1.2million. The costs involved with the shutdown and the unamortized value of the entertainment services are only adding up to the charges which are going to translate to losses.
However, the Silver Heritage Group is still positive about the settlement. Given the poor performance of the club and the fact that it was struggling to generate revenue, the firm is satisfied with the deal.
Also, with the investment certificate they had, it was unclear whether they would be able to operate with table games in Vietnam. In a statement regarding the recent settlement, Silver Heritage Group said that amidst the complexities and underperformance of the club the agreement was the most prudent option.