Status of Mega Bank Facility
Sydney, July 1, 2021 AEST (ABN Newswire) - Donaco International Limited (ASX:DNA) (UGS:FRA) provides an update on the status of its Loan Facility with its main lender Mega International Commercial Bank Co Ltd, known as Mega Bank.
Donaco has been diligently repaying its debt facility with its lender Mega Bank from the initially borrowed amount of A$131.54m (equivalent to USD$100m). As of 30 June 2021, the remaining outstanding debt is $US6.80m (equivalent to A$9.05m).
Donaco is pleased to report that a new loan repayment plan has been agreed with Mega Bank. The plan comprises an alternative monthly repayment of USD$1m over six monthly instalments starting from June 2021 to November 2021, and a final instalment of USD$1.8m to be paid by 31 December 2021. The first instalment of USD$1m for June 2021 has already been paid. The official approval letter from Mega Bank is envisaged to be obtained in July 2021.
The Board of Donaco has approved a shareholder loan from Mr. Lee Bug Huy, aka Techatut Sukcharoenkraisri, Chief Executive Officer & Executive Director of Donaco, to borrow a sum of up to USD$8.2 million. The loan is repayable over the next three years, on terms that are materially the same as those of the Mega Bank facility. The loan is expected to be repaid from operational cash flow, within the loan term.
In addition, Donaco has received a waiver in relation to the default interest and financial covenants of the Mega Bank facility.
Non-Executive Chairman Porntat Amatavivadhana commented: "Donaco has been rigorously repaying the USD$100 million loan facility to Mega Bank since 2015 resulting in the remaining principal amount of US$6.8 million, as at the date of this announcement. "
"To this extent, we are extremely encouraged to have reached the initial approval from Mega Bank for a new plan to repay the remaining loan by the end of calendar year 2021."
"The COVID-19 outbreak is outside of our control, and we have acted according to what was mandated by the Cambodian Government with the temporary closure of all casinos in the region, including Star Vegas. The continued safety of our staff and visitors remains paramount and we will advise the market once there is any further update."
About Donaco International Ltd
Donaco International Limited (ASX:DNA) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.
Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.
Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.
Donaco International Ltd