Former vendor blamed
In a filing to the Australian Securities Exchange, Australia-listed casino operator Donaco International Ltd. disclosed it may incur an impairment charge on its Star Vegas casino license of about AU$144 million (US114 million), reported Inside Asian Gaming.
The company was informed of the pending charge by its auditors, Crowe Horwath ahead of the company’s half-year December 2017 financial results.
“The impairment of the Star Vegas business is a direct result of the breaches of agreement by the Thai vendor, Mr. Somboon Sukcharoenkraisri, and his two sons, ‘Ham’ Techatut Sukcharoenkraisri and ‘Qoo’ Bhuvasith Chaiarunrojh,” said a statement from Donaco.
“The company has commenced litigation against Mr. Sukcharoenkraisri and his sons over their breaches of their agreements, which specifically relate to the operation of competing casino and gaming businesses in the Poipet area.”
In December, Donaco announced that it had won a preliminary injunction against its former vendor for continuing to offer gaming in breach of a non-compete agreement. Under the terms of that agreement, the vendor was barred from operating any gaming business in the Poipet area.
Donaco has entered into arbitration proceedings in Singapore where it claimed damages of US$120 million.
