A sudden and inadvertent loss of business in Vietnam has left the Southeast Asian Casino Operator Silver Heritage Group in a shortage of funds as the company has to pay a US $2 million towards repayment of debts.
In its recent trading report which was issued as a part of the company’s 2018 Annual Report, the company has expressed concerns over its operations and has said that it may not be able to continue because of a potential inability to “realize its assets and extinguish its liabilities in the normal course of business.”
The company’s immediate concern is a $2 million debt which it has to repay by March 2020. The loans were a part of a deal with OCP Asia which allowed the company has funded through bonds to add to the operations at its Tiger Palace Resort in Nepal. Following the agreement, the company repaid US$6.8 million of bonds and secured an extension of the maturity date of the remaining US$11.2 million through to April 2021.
However, the problems began when the company learned that table games at Phoenix International Club in Vietnam were not allowed anymore. Following the decision, the company got out of the contract with Phoenix. Earlier we had reported how 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.As such its revenues suffered.
In its recent filing, Silver Heritage said that parting with its operations in Vietnam “is a potential event of default under the terms of its Bonds.”