Southeast Asian casino operator Donaco International Ltd says its settlement with the Thai vendors and owners of the property upon which its Cambodian casino Star Vegas sits is still awaiting approval from its bank – Mega International Commercial Bank Co Ltd.
Donaco announced earlier this month that it had reached a settlement with the Thai vendors to end all legal proceedings immediately and renew the company’s Star Vegas lease for 95 years.
The settlement brings multiple proceedings to an end including an arbitration claim in Singapore, where Donaco was seeking US$190 million in damages, and a Cambodian court battle over a disputed 50-year land lease deal for Star Vegas, both related to Donaco’s assertion that the vendors continued to run gaming operations in Poipet in defiance of non-compete provisions.
In a Monday filing, the company said it has now submitted withdrawal requests to the relevant courts and authorities and is waiting on judgements and confirmation to fulfil conditions of the settlement.
It is also awaiting the bank’s consent based on provisions in its facility agreement related to the payment of outstanding rent plus AU$20 million to the vendors, and the removal of non-compete clauses.
“Donaco is in discussion with Mega Bank and has sought the consents required,” the company said.
“Donaco remains confident that Mega Bank will support the settlement reached with the Thai vendors and the continuation of the Star Vegas casino.”
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