Australia-listed casino investor Frontier Capital Group Ltd said on Friday that it is in discussions with a third party to manage the operations at the firm’s Casablanca Casino in the Clark Freeport Zone, in the Philippines.
“Discussions are under way with a new manager that will be appointed concurrent with the escrow account funding and the recommencement of operations at the casino,” the firm said in its 2016 annual report filed with the Australian Securities Exchange.
In February 2016, Frontier Capital acquired Stotsenberg Leisure Park and Hotel Corp, an entity controlling a gaming property called Hotel Stotsenberg and Casablanca Casino (pictured).
Casino operations at the property have been suspended since the first quarter last year, as the company is required by the Philippine Amusement and Gaming Corp (Pagcor) to settle an escrow account in the amount of PHP225 million (US$4.4 million), Frontier Capital confirmed in Friday’s filing.
The casino was managed by E!xcite Gaming and Entertainment Inc, which was providing Frontier Capital with a five-year profit guarantee of US$5 million per annum starting from January 2015.
“By mutual agreement, this service agreement has been terminated in February 2017,” said Frontier Capital.
The trading of Frontier Capital’s shares on the Australian Securities Exchange has been suspended since February 15, 2016. Trading is expected to resume once the company settles the escrow account and resumes operations at Casablanca Casino, the company had said.
The company did not say in its latest filing when it expected to resume casino operations. The operation of the 239-room hotel has not been affected, according to Frontier Capital.
On Friday, the company released results for the year ended December 31, 2016. For full-year 2016, Frontier Capital recorded a net loss of AUD51.2 million (US$41 million), including a goodwill impairment of AUD31.1 million related to the acquisition of Stotsenberg Leisure Park and Hotel Corp and a provision for doubtful trade and non-trade receivable of AUD11.4 million.
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