Donaco wins court order for share freeze

Donaco International Limited said the Supreme Court of New South Wales has granted an injunction freezing the shares of the three Thai vendors of the Star Vegas casino in Cambodia.

The order will prevent the three, who own about 17.9 percent of Donaco’s listed share capital, from selling their stock until the parties resolve litigation, it said in a filing to the Australian Stock Exchange.

Donaco is seeking damages of about $120 million from the Thais and is in arbitration proceedings in Singapore.

The company named the defendants as Somboon Sukcharoenkraisri and his two sons Lee Bug Huy and Lee Bug Tong.

Donaco bought the Poipet property in 2015, but under the accord the vendor continued to manage Star Vegas for a further two years. Donaco took management fully in house in June 2017, but claims the vendor continues to breach his agreements by conducting gaming operations at the Star Paradise property next door, and at another casino concealed behind a supermarket operation.

A Cambodian court has issued an interim injunction to close down the competing gaming operations. This decision was appealed, but the appeal was rejected and the injunction was confirmed on 19 February 2018.

Donaco has withheld payment of the final vendor management fee of $19 million for 2017.