Australian-listed Silver Heritage Group says it has been given the green light by the Australian Securities Exchange to proceed with a short-term loan without seeking the approval of shareholders.
The loan relates to a US$1 million provision from a group of company shareholders which it plans to use for working capital purposes outside of Nepal for the next six months. Silver Heritage is based in Sydney although the two casinos it operates – Tiger Palace Resort Bhairahawa and the Millionaire’s Club & Casino Kathmandu – are both in Nepal.
The company revealed last month that it had executed all necessary legal documentation for the loan with OL Master Pte Ltd, OL Master Ltd and Orchard Landmark II – a trio of companies who are the majority of bondholders in Silver Heritage under a 2016 bond instrument and also hold a combined 9.46% of Silver Heritage’s issued shares.
Under the terms of the loan, which includes an interest rate of 15% per annum, the lenders will provide Silver Heritage with US$500,000 immediately, US$250,000 no later than 29 February 2020 and the final US$250,000 no later than 31 March 2020. The loan also includes an extension of the maturity date of existing bonds to 31 December 2021.
As previously reported by Inside Asian Gaming, Silver Heritage has been actively looking for either a buyer of its Nepal assets or other forms of funding following the loss of one of its primary sources of revenue, Phoenix International Club in Vietnam, last May.
