Donaco International Ltd says it has reached an agreement with its main lender, Mega International Commercial Bank Co Ltd, that will see it repay the remaining balance on an initial US$100 million loan by the end of this year.
According to an ASX announcement, Donaco’s new loan repayment plan will see it repay the remaining US$6.8 million balance via six monthly instalments of US$1 million each from June to November 2021 and a final instalment of US$1.8 million to be paid by 31 December 2021. The first US$1 million instalment has already been paid.
The original loan formed part of Donaco’s funding arrangements for the acquisition of Star Vegas, located in Poipet, Cambodia, in 2015. Star Vegas remains closed after suspending operations in April due to COVID-19.
Donaco also revealed Thursday that it has approved a shareholder loan from its CEO and Executive Director, Lee Bug Huy – aka Techatut Sukcharoenkraisri – in the amount of US$8.2 million to be repaid over the next three years. The company expects to pay the amount directly from operational cash flow once Star Vegas and Vietnam casino Aristo International resume business.
“Donaco has been rigorously repaying the US$100 million loan facility to Mega Bank since 2015 resulting in the remaining principal amount of US$6.8 million, as at the date of this announcement,” said Non-Executive Chairman Porntat Amatavivadhana.
“To this extent, we are extremely encouraged to have reached the initial approval from Mega Bank for a new plan to repay the remaining loan by the end of calendar year 2021.
“The COVID-19 outbreak is outside of our control, and we have acted according to what was mandated by the Cambodian Government with the temporary closure of all casinos in the region, including Star Vegas. The continued safety of our staff and visitors remains paramount and we will advise the market once there is any further update.”
Full repayment of its bank loan represents a significant milestone for Donaco, which also concluded a settlement agreement with the Thai vendors and owners of Star Vegas in January.
The settlement agreement brought to an end an array of legal proceedings between the two parties while allowing for the company to renew its Star Vegas lease for 95 years.
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