Australia court lifts freeze order on Donaco shares

Star Vegas, Cambodia

The Supreme Court of New South Wales has lifted a freeze order that restricted a group of Thai businessmen from selling a 17.99 percent stake in Donaco International.

Donaco bought its Star Vegas casino in Cambodia from the group, but has since been involved in a series of legal disputes with the vendors.

Those disputes were finally settled in March. The vendors have agreed to put the 148,199,529 shares into an escrow account and not to sell them for a six month period from the March 2nd date of the settlement.

A company statement at the time said: “The settlement reached provides certainty of tenure for the Star Vegas business and will conclude all disputes between the parties. It will also allow the company and management to now focus on the forward momentum of the profitable Star Vegas business, and continued improvements to the Company’s balance sheet and financial position ahead of any Covid-19 impacts to second half revenue and earnings.”

The spat between Donaco and its Thai vendors first came about after Donaco launched legal proceedings which alleged the Thai vendors were running a neighboring competing business in breach of their contract. The vendors retaliated in 2018 by initiating termination of the lease agreement with Donaco, citing the casino operator’s lack of rental payment.