Gaming and casino investor Amax International Holdings Ltd says it still considers the gaming license possessed by closed Macau casino Greek Mythology to be “a valuable asset to the company” but “will consider proposing a voluntary winding-up or otherwise disposing of its interest in Greek Mythology as a final step” to remove a Disclaimer of Opinion issued by its auditors.
Amax International is currently awaiting the result of an application to the Macau court to appoint its Chairman and CEO, Ng Man Sun, as the administrator of Greek Mythology, located inside The Beijing Imperial Palace Hotel, in order to gain access to and control over the casino’s books and records.
Greek Mythology was originally closed in December 2015 under order of the DICJ, however the Macau Government Tourism Office also ordered The Beijing Imperial Palace Hotel to cease operations on 22 July 2016. The hotel’s license was subsequently revoked on 12 January 2017.
Amax International, which holds a 24.8% stake in Greek Mythology, said in a filing to the Hong Kong Stock Exchange this week that it “has 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.”
The appointment of Mr Ng as administrator would allow the company to retrieve bank statements, liaise with Macau government authorities and ascertain the casino’s financial standing with a view to having the Disclaimer of Opinion removed.
However, Amax International warned that it expects the process to take at least another 12 months to complete, leaving the future of Greek Mythology in limbo.
“Having sought advice from the Macau lawyer, it is estimated that it would normally take nine to 12 months to obtain result from the Macau Court on the application,” it said. “In view of the above, the company is of the view that when the Disclaimer of Opinion could be removed is uncertain but in any circumstances will not be less than one year.”
The company added that it “remains positive on the future prospect of [the] Macau gambling industry and considers that the gambling license possessed by Greek Mythology is a valuable asset to the company.
“The company considered that appointing the administrator to access all books and records of Greek Mythology is an appropriate strategy to possibly remove the Disclaimer of Opinion and is in the interest of the company and the shareholders as a whole.
“Other contingent plan to be taken in removing the Disclaimer of Opinion would only be considered upon receiving a negative result on the application from the Macau Court. In the event that the Macau Court rejected the application, the company may consider the next steps such as, subject to the reasoning behind the judgment, filing an appeal application or taking possible legal actions as being a debtor of Greek Mythology.
“If all other possible alternative actions exhaust, the company will consider proposing a voluntary winding-up or otherwise disposing of its interest in Greek Mythology as a final step to remove the Disclaimer of Opinion.”
The developments in Macau haven’t impacted Amax International’s international ambitions, with the company also announcing this week that it has signed a Letter of Intent with the owner of an unspecified Cambodian casino to operate a VIP room.
The deal would see Amax International operate the room, boasting 13 baccarat tables, for a fixed monthly fee for a period of two years.
Completion of the proposed transaction remains subject to certain conditions being met, including a due diligence review of the VIP Room to the reasonable satisfaction of the company; satisfactory legal opinion from Cambodia lawyers on the legality of the operation of the casino; legal opinion from Cambodia lawyers on the legality of the operating rights agreement; and the existence of an effective Anti-Money Laundering program which complies with the relevant laws and regulations of Cambodia.
Amax International said the VIP room provided the company with an opportunity to “diversify its income stream and to expand its gaming business.”
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