Star “continues to rebuild” amid disputes
Australian-listed Donaco International Limited has won an extension from the Supreme Court of New South Wales on an order that froze shares held by the Thai vendors of its Star Vegas casino resort in Poipet, Cambodia, on the border of Thailand.
In a filing to the Australian Securities Exchange, Donaco said the order that prevents the shareholders from selling has been extended from April to early November.
Each of the three shareholders—Somboon Sukcharoenkraisri, Techatut Sukcharoenkraisri and Bhuvasith Chaiarunrojh—own about 148 million shares in the company, or approximately 17.9 percent of the issued capital, according to GGRAsia. In 2015, they sold the Star Vegas to Donaco for US$360 million. In September 2017, Donaco issued a cease-and-desist letter to the Thai vendors, claiming they were still operating the nearby Star Paradise in competition with Star Vegas in violation of a non-compete agreement.
Last December, a Cambodian court ordered that Star Paradise be closed. According to a Donaco filing, the court then gave the vendors the option of deferring execution of the injunction by depositing a guarantee of US$360 million.
Donaco blamed the vendor’s alleged breach of contract and illegal competition for a 25 percent year-on-year decline in rolling chip turnover to THB24.78 billion (US$794 million) for the three months to March 31.
The current order bars the defendants or their representatives from either selling or disposing of the shares “until the final resolution and payment of any award of damages” in some Singapore arbitration proceedings initiated by Donaco. The firm is claiming US$120 million in damages.
Inside Asian Gaming reports that Donaco, which is seeking damages of US$120 million, won an injunction via a Cambodian court in December to close Star Paradise casino and is continuing to pursue enforcement of its legal rights via arbitration proceedings in Singapore.
The defendants own 148 million shares in Donaco, representing approximately 17.9 percent of the company’s issued capital, reported IAG.
