Donaco International Limited (ASX:DNA) released an update on its legal proceedings

Recently, Donaco released an update on its legal dispute with the vendors of the Star Vegas casino business in Cambodia. It was earlier announced on 12 June 2018 that Donaco was granted an injunction in its favour by the Banteay Meanchey Court of First Instance in Cambodia, to prevent the vendors of the Star Vegas business from threatening to terminate the lease of the land on which the Star Vegas sits. Unless it can be overturned by another court or arbitration ruling, this injunction will remain in force for an indefinite period of time.

It was observed that vendors have committed a number of breaches of the lease agreement, specifically by encroaching on the land leased to Donaco. Consequently, the vendors have alleged that Donaco has committed various breaches of the lease. Now the vendors have commenced arbitration proceedings in Cambodia over these disputed matters that are under the lease. Management is confident of its position in the arbitration proceedings as the judgment which is already made by the Cambodian court is in its favour. The group’s Star Vegas business has been still recovering from impact of the Thai vendor’s breaches of contract while Aristo International Hotel Casino visitation has been up as per March quarter update. There was no change in the price for (ASX:DNA) as of now and it was trading near its 52-week low price that is $0.145 (as on 29 June 2018; 13:37 PM AEST).


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