ASX-listed Donaco International Limited, which operates casinos in Cambodia and Vietnam, has approved a new US$5 million loan facility from its own CEO, Lee Bug Huy, in order to provide additional financial stability over the coming months.
The US$5 million loan follows the recent repayment of the remaining balance of Donaco’s original US$100 million loan from its main lender, Mega International Commercial Bank Co Ltd. Repayment of that loan was also aided by a previous US$7.8 million loan facility from Lee in July 2021.
As reported by Inside Asian Gaming earlier this week, Donaco is currently awaiting permission from the Cambodian government to reopen its Star Vegas casino, located in Poipet near the border with Thailand.
In announcing its new loan, Donaco said it “has been severely impacted by the COVID-19 pandemic and, in particular, the consequent closing of international borders which has significantly affected the level of patronage at its casinos in Vietnam and Cambodia.
“The company was expecting Star Vegas to reopen by now, but no indication has been formally received from Cambodian Government authorities as to when this will occur. This follows the Cambodia Government’s announcement mandating the temporary closure of all casinos from 1 April 2020.
“The funds made available under the facility will allow for continued balance sheet protection to guarantee the business remains in a sustainable position until wider conditions improve.”
The new shareholder loan facility is unsecured without any specific repayment schedule and Donaco will repay when the funds are available from business operations, the company said.
At present, the final repayment date has been set at 48 months after the first drawdown at an interest rate of 6.00% per annum, with the final repayment date able to be extended by another eight months upon request.
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