Australian-listed Silver Heritage Group says it has yet to receive the second of two payments owed by the owner of Vietnam’s Phoenix International Club relating to a US$5.25 million Settlement Agreement signed in March.
In a filing with the Australian Securities Exchange, Silver Heritage confirmed it had been paid the first instalment as agreed on 12 March 2019 with the second due on 11 April, however “the owner of Phoenix has failed to make payment of this second instalment and the company intends to use all avenues available to it to ensure these monies are paid.”
The Settlement Agreement relates to the termination of Silver Heritage Group’s previous Entertainment Services Agreement which had seen the company provide gaming management services at the property, located outside of Hanoi. The former partners parted ways following amendments made to Phoenix International Club’s Investment Certificate that no longer allowed for the operation of gaming tables.
While Phoenix had accounted for around 45% of its group-wide revenue in 2018, Silver Heritage also revealed in its Tuesday filing that it is open to selling its Nepal integrated resort Tiger Palace Bhairahawa.
“The company has undertaken a number of initiatives to release capital out of its asset base, including the appointment of Union Gaming as its exclusive adviser in relation to locating potential strategic partners or purchasers of the company’s Nepal operations,” it said.
A potential sale comes as Tiger Palace reported record table drop of almost NPR300 million in March, with GGR of around US$1.4 million through 1Q19. Tiger Palace also launched VIP operations in March.
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