By Violeta Prockyte
Donaco International Ltd announced that the Supreme Court of New South Wales lifted a freezing order that was placed on the shares owned by certain Thai parties. The issue began when the company acquired the Star Vegas Resort and Club casino in Poipet, Cambodia, for $360 million in 2015, and the Thai business partner continued operations in the Donaco-owned venue even after the contract expired.
The freeze order on the shares was first placed in April 2018, was extended several times and finally ended on 1 May, 2020. The freeze prevented the vendors from selling their 148,199,529 shares, which is about 18% of Donaco’s issued share capital, while the court case was ongoing.
Reportedly, the Thai vendors agreed to a voluntary escrow, which states they won’t be able to dispose of their shares for at least six months from March 2.
The parties have been engaged in a number of disputes, and in early March, Donaco agreed to remove some of the clauses from the deal to end the disputes early.
Even with the court case officially over, the company still faces financial trouble. On April 17 it was announced that the settlement payments have been postponed by Taiwan’s Mega International Commercial Bank. Additionally, because of csino closures due to the Covid-19 pandemic, Donaco spends close to $900,000 per month to maintain the Star Vegas venue, as well as the casino in the Aristo International Hotel.