Donaco major lender may delay payment of US$5 mln

The major lender to Australian-listed casino operator Donaco International has agreed to delay the payment of US$5 million by six months.

In a filing with the Australian Stock Exchange on Monday, Donaco said its main lender, Mega International Commercial Bank Ltd, had agreed to "delay" the principal payment of US$5 million until Dec. 31. It was originally established between Donaco and the bank in August 2017 and was later due on Monday (15 June) under a revised facility contract.

"Megabank has also approved waivers for all contracts in June 2020 under the facility contract until Dec. 31, 2020," Donaco said. This included a requirement that the total investment in cash and cash equivalents by Donaco Group must be A$20 million ($13.9 million) or more at any time "on or after June 30.

Donaco operates casino hotel properties in Indochina: the Star Vegas Resort and Club (file photo) in Poipet, on the border between Thailand and Cambodia, and the Aristo International Hotel and its related casinos in Laoqai, on the border between Vietnam and China.

Donaco said in a recent filing that the business "continues to be impacted by COVID-19 related travel restrictions and reduced sponsorship in Star Vegas and Aristo."

"We will continue to consider liquidity measures and capital injection sources to ensure our business remains in a sustainable and dynamic position during this period of ongoing global uncertainty," the company said. Donaco stated in its deferred payment agreement with Megabank that " proceeds from capital injection prior to December 31, 2020, shall be used to pay $5 million in principal upon receipt." 홀짜게임

Donaco announced earlier this month that outgoing CEO Paul Arborkle would remain in place on a "monthly basis" after his planned June exit to help the company "smooth transition to a new CEO."

"The board has interviewed several outstanding candidates for the CEO position currently under review during the executive search and is pushing for appointments as soon as possible," Donaco said at the time.