An appeals court in Phnom Penh, Cambodia has ruled in favor of Asian gaming operator Donaco International Ltd. in its long-simmering dispute with the Thai vendors of its Star Vegas casino in Poipet. The decision means the vendors may not seize any of Donaco’s business assets and have no further legal recourse in the matter.
The Thai vendors were originally granted permission to host gaming facilities in a neighboring property to Star Vegas in a deal that saw Donaco paid a monthly management fee of THB5 million (US$151,000). That agreement expired in 2017, and was not renewed because Donaco said the vendors violated non-compete provisions. That’s when the vendors threatened to terminate Donaco’s Star Vegas land lease.
Twice the vendors moved to seize various Star Vegas assets in the case; they also attempted to freeze Donaco’s Cambodian bank accounts, with those attempts rejected by the lower courts on two previous occasions in 2019.
According to GGRAsia, “encouragingly for the ASX-listed firm,” the appeals court is the same court that will rule on Donaco’s own appeal against a recent Cambodian lease arbitration decision.
Donaco is currently seeking damages of US$190 million from the Thai vendors in a Singapore court, while Australian authorities have placed a freeze order on the sale or movement of shares held by the vendors.
