Malaysian casino operator NagaCorp has announced that the Phase 3 expansion of its NagaWorld casino in Phnom Penh, Cambodia will be delayed by up to four years.
According to GGRAsia, the Hong Kong-listed company controlled by Chen Lip Keong also said it may reduce the scope of “Naga 3” to conserve capital in the wake of the Covid-19 pandemic.
In a filing, NagaCorp laid out revised plans for the $3.5 billion, which was originally set to be complete in September 2025. That date has now been pushed back to September 2029.
The company said the extension was necessary “in view of the external geopolitical, macroeconomic environment and the stiff global inflationary pressures.” NagaCorp said it is “carefully and seriously” considering options including “matching revenue generation with capex expenditure and … project resize.”
However, it added, it is “up to date” in its financial obligations and said “the fundamentals and the directions of the company remain unchanged.”
In late 2022, Moody’s Investors Service said NagaCorp was at risk of defaulting on $421.7 million in outstanding notes due in July 2024, despite an offer to repurchase up to $120 million of the notes. Moody’s said it was particularly concerned over NagaCorp’s access to funding given the “slow recovery” at NagaWorld.
NagaCorp recently reported gross gaming revenues of $117 million at the resort in the first quarter, with mass-market gaming at 81 percent of pre-Covid levels.
