Donaco confirms temporary shutdown of Cambodia casino
Australia-listed casino operator Donaco International Ltd confirmed in a Tuesday filing that the casino (pictured) at its Star Vegas Resort and Club in Poipet, Cambodia, would close on a “temporary” basis, in line with a Cambodian government order covering all such facilities in the country, and which takes effect at 11.59pm on Wednesday (April 1).
“The closure of the casino operations will have a material impact on [the] Donaco Star Vegas casino’s business,” the firm noted in its announcement to the Australian Securities Exchange.
The firm added it was “focused on implementing mitigation strategies to minimise impacts to staff and to conserve liquidity” finance-wise.
The Cambodian government had said in a Monday announcement the shuttering of the nation’s casino industry was to prevent the spread within that country of the novel coronavirus responsible for the Covid-19 infection.
Donaco said in its Tuesday filing: “At this time, the board is unable to advise the impacts on financial performance due to the uncertainty related to the duration of the mandated closure, however, will provide further updates in due course.”
It added: “The company remains in ongoing discussions with principal lender Megabank.”
Donaco had said in a Friday filing it was seeking consent from Mega International Commercial Bank Co Ltd so that Donaco could “fulfil parts of the settlement agreements” it has arranged with the orginal Thai vendors of Star Vegas.
Donaco had announced last week it was closing “most” of its Star Vegas casino property.
The firm explained at the time its decision to scale back operations at Star Vegas followed an announcement by the Thai authorities, stating the border crossing from Thailand into Cambodia via Poipet had been closed for 14 days. The goal was to control the further spread in Thailand of the Covid-19 infection.
Donaco also operates the Aristo International Hotel and associated casino at Lao Cai on Vietnam’s border with China.
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