McGregor: “Not a decision on the merits”
The chairman of Australia-listed casino operator Donaco International Ltd. says the company will pursue its legal case against a Thai vendor for breach of contract and illegal competition in Poipet, Cambodia, although the Cambodian Court of Appeal recently overturned a preliminary injunction that would close the competitor’s two casinos.
“This is not a decision on the merits of our claim,” said Stuart McGregor of the long-running dispute between Donaco and the former owners of its Star Vegas Resort. “It makes no difference to the situation on the ground, as the original order has never been enforced. And it makes no difference to our legal strategy, which is to continue to pursue the vendor in the Singapore arbitration and in the Australian courts.”
The preliminary injunction, granted in December 2017, ordered the closure of the two competing casinos, Star Paradise and Paramax. Donaco is seeking damages of US$120 million.
McGregor said Paramax was owned by two of the vendor’s sons until August 2018, after which ownership was “transferred to a person in Thailand. Star Paradise changed its name to Winsor and continues to operate.” The company contends that Somboon Sukcharoenkraisri and sons Lee Bug Huy and Lee Bug Tong continued to run gaming operations at Star Paradise next to Star Vegas despite the non-compete.
