Silver Heritage Group said it has negotiated a $5.2 million settlement with the owner of the Phoenix International Club in Vietnam after it was recently forced to close over complications with its investment certificate.
The Australia-listed company said the owner of the club had breached its agreement to maintain a gaming license to operate table games. The property has since reportedly re-opened its doors.
The settlement will be paid in two tranches and represents about two years of expected EBITDA contributions from Phoenix. Silver Heritage expects to record a loss on disposal of about $1.2 million, related to the remaining unamortised value of the entertainment services agreement with the club, the transfer of assets and shutdown costs.
Silver Heritage said it views the settlement as “generally favorable,” given the recent underperformance of the club and the uncertainty regarding its Investment certificate and whether it will be amended to allow table games.
Following the settlement, Silver Heritage has no operations in Vietnam. Its main business is now in Nepal.