Gaming and casino investor Amax International Holdings Ltd has taken the dramatic step of writing off its 24.8% stake in closed Macau casino Greek Mythology, valued at more than HK$353 million (US$45 million), in order to remove a Disclaimer of Opinion issued by its auditors.
In an announcement late on Sunday following a suspension of trading on the Hong Kong Stock Exchange last week, Amax revealed that it had made the decision to declare full impairment losses on its Greek Mythology interest, as well as HK$28.5 million in cash owed, as a result of making no headway in its lengthy pursuit of financial records from the casino’s former management company, Greek Mythology (Macau) Entertainment Group Corporation Limited.
Greek Mythology was closed in December 2015 under order of the DICJ, with the Macau Government Tourism Office subsequently ordering The Beijing Imperial Palace Hotel in which the casino was housed to cease operations on 22 July 2016. The hotel’s license was revoked on 12 January 2017.
Amax reported in September 2017 that it had been “trying but failed to contact the management of Greek Mythology to understand the current situation of Greek Mythology which led to uncertainty on the development of Greek Mythology.”
Having been unable to complete its own financial records in the 18 months since, Amax said on Sunday that it had now agreed to write off the entire asset and sell its 24.8% stake to a local Macau investment firm, Fu Po International Limited, for just HK$38,000.
“The board is of the view that, based on previous discussion with the company’s auditor, the impairment and the disposal of [Greek Mythology] could address and resolve the audit issues arisen by the auditor’s prolonged disclaimer of opinion on the company interest in [Greek Mythology] and the amount due,” it said.
Amax, which also boasts gaming operations in Cambodia and Vanuatu, recently reported losses of HK$21.5 million for the six months ended 30 September 2018.