Southeast Asian casino operator Donaco International Ltd says it has reached an agreement with the Thai vendors of the property upon which its Cambodian casino Star Vegas sits to defer all payments related to a recent settlement agreement, pending bank approval.
As previously reported by Inside Asian Gaming, Donaco is still awaiting approval from its bank – Taiwan’s Mega International Commercial Bank Co Ltd – regarding the settlement agreement, which seeks to end all legal proceedings between the parties and renew the company’s Star Vegas lease for 95 years.
Those legal proceedings include 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.
While Donaco said in a Friday filing it remains confident of gaining the support of Mega Bank in finalizing the settlement, the company revealed it has agreed with the Thai vendors for all payments to only be due and payable once bank consent is received.
The payments, once made, will see a non-compete clause preventing the Thai vendors from operating a rival business alongside Star Vegas removed, and Donaco provide all unpaid management fees and additional lease payments.
“We thank the parties for their cooperation,” said Donaco Chairman Mel Ashton. “The economic interests of all parties are aligned and these actions remove uncertainty around the settlement and lease as we work to finalize bank consent.”
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