Nepal casino operator Silver Heritage Group appears to be edging ever closer to selling its remaining assets after revealing it will no longer prepare its financial statements on a going concern basis.
In an ASX announcement issued early Tuesday, Silver Heritage noted that Australian Accounting Standards require financial statements to be prepared on a going concern basis only where there is neither the intention nor the need to materially curtail the scale of the entity’s operation.
With the company currently in discussions over the potential sale of its Nepal assets, that criteria no longer applies with financial statements to now be prepared on a realization basis of accounting, “reflecting an orderly disposal of the company’s Nepal operations.”
Silver Heritage revealed in late July that it had received a conditional, binding offer to acquire its Nepal assets, comprising Tiger Palace Resort Bhairahawa and the Millionaire’s Club and Casino in Kathmandu, for US$33.9 million.
The offer is pending the potential buyer, Mr Indra Bahadur Thapa, depositing US$3 million into an escrow account by 10 September.
While Silver Heritage didn’t provide any update on such payment, it did note that the sale, if approved, “would represent a material curtailment of the entity’s operations.”
However, it added that the company was also continuing to pursue alternate options for obtaining additional funding in order to avoid the need to sell.