Silver Heritage Group has reached a Settlement Agreement with the owner of Vietnam’s Phoenix International Club that will see it paid a sum of US$5.25 million and an Entertainment Services Agreement (ESA) with the owner terminated.
The Settlement Agreement follows the news earlier this month that operations at Phoenix International Club had been shut down after the property’s General Manager advised that table games were no longer permitted under a revised Investment Certificate.
Opting to step away from Phoenix in the wake of those developments, Silver Heritage said it views termination of the agreement as being “generally favorable” given the circumstances. In particular it pointed to the recent underperformance of the casino, breaches of the ESA by the owner, the recent closure of the casino on 1 March 2019 and ongoing uncertainty in relation to possibility of the Investment Certificate issued to Phoenix to be amended by law to allow for table games on the premises.
The US$5.25 million settlement will be completed in two batches – the first having already been paid on 12 March and the second to follow on 11 April – and represents two years of expected EBITDA contributions from Phoenix. The property accounted for around 45% of the company’s group-wide revenue in FY18.
Silver Heritage said it expects to record a loss of around US$1.2 million on the disposal.
RelatedPosts
