GGRAsia – Amax Int sells interest in Greek Mythology casino

Amax Int sells interest in Greek Mythology casino

Feb 18, 2019 Newsdesk Latest News, Macau, Top of the deck

Hong Kong-listed gaming services firm Amax International Holdings Ltd has disposed of its interest in an entity that used to run the Greek Mythology casino in Macau.

The casino has been shuttered for several years, caught in a power struggle between two former domestic and business partners. The hotel where the casino is located – Beijing Imperial Palace Hotel – first closed on a temporary basis in July 2016 and subsequently saw its operating licence lapse regarding compliance with certain Macau government standards.

Amax International stated in a Sunday filing that it had sold its 24.8 percent stake in Greek Mythology (Macau) Entertainment Group Corp Ltd for a nominal sum, to a Macau-registered property investment and business consultancy firm called Fu Po International Ltd. Greek Mythology (Macau) had been described in previous filings as the operator and manager of Casino Greek Mythology.

In Sunday’s filing, Amax International said the disposal involved an impairment of approximately HKD353.6 million (US$45.1 million) related to its interest in Greek Mythology (Macau), and of HKD28.5 million of an amount due to the group from the latter entity as of September 30, 2018.

It added the move was due to a “lack of progress” in getting audited financial statements and other information “necessary for audit purpose” from the Greek Mythology (Macau) entity, and the applying of a “court order”.

In May, Amax International had declared “untrue” a report in Chinese-language newspaper Ming Pao Daily, that interests associated with Alvin Chau Cheok Wa, boss of Macau junket investor Suncity Group, had taken control of Beijing Imperial Palace Hotel and were planning to revamp it. The takeover was reported to be in lieu of a debt.

It was subsequently reported in the Macau media that there had been court proceedings in Macau regarding the hotel business.

The hotel and the gaming facility inside it – Casino Greek Mythology – have been the subject of myriad disputes, including an acrimonious falling out between Ng Man Sun, chief executive and chairman of Amax International, and his former domestic partner Chen Mei Huan – also known as Chan Mei Fun.

Casino Greek Mythology – which has relied on the gaming licence of local concessionaire SJM Holdings Ltd – has been closed for more than three years.

Amax International added in its latest filing regarding the Greek Mythology interest: “The board wishes to emphasise that the above-mentioned impairments are one-off and non-cash in nature and do not have any impact on the cash flow and the current business operations of the group.”

The nominal net gain of HKD30,000 on the disposal was to be used for working capital, said the firm.

In its interim report issued in November, the issue of the group’s existence as a going concern was again raised, due to its consolidated net loss after taxation of approximately HKD22.1 million, and consolidated net liabilities of approximately HKD69.3 million.

Given that the net liabilities largely related to convertible bonds of the sum of HKD94.0 million in favour of the group’s chairman Mr Ng, he had pledged to extend the maturity of the convertible bonds for 24 months if the firm were unable to fulfil its obligations.