Macau-based slot machine agent Asia Pioneer Entertainment says it expects to write off HK$26 million (US$3.4 million) in receivables for the six months ended 30 June 2020 after terminating two finance lease agreements for the leasing of electronic gaming equipment (EGE).
According to a filing with the Hong Kong Stock Exchange, the agreements were terminated on Thursday after Siam Star Leisure Co, Ltd, which leased EGE from APE for use at a casino in Cambodia, and GLIMEX Inc, which did the same for a casino in the Philippines, failed to pay lease rental of around HK$17 million and HK$9 million respectively.
Under the terms of the lease agreements, both signed in December 2018, APE has the right to terminate “without the need for any notice or demand” if the lessees fail to make any payment for equipment rental by the due date.
APE said the group is now expected to write off the HK$26 million finance lease receivables from its 1H20 accounts and has demanded the return of the leased equipment.
“The Company intends to identify new lessees for the EGE in Macau or other Southeast Asian countries,” it added.
APE last week reported an increased loss of HK$4.1 million in 1Q20 on a 70.1% decline in revenue due to a slowdown in new orders and cancellation of others as a result of COVID-19.
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