Silver Heritage board takes pay cut amidst liquidity issues

Nepal Tiger Palace
Nepal Tiger Palace

Silver Heritage Group said its board has agreed to halve its cash remuneration and take other initiatives to cut costs to help address expected tight liquidity in the second half as its new IR in Nepal ramps up.

The Australia-listed group said cash burn from the opening of the Tiger Palace Bhairahawa, together with underperformance from its mature properties — the Phoenix Club in Vietnam and The Millionaires Club in Kathmandu  — led to a Q1 adjusted EBITDA loss of $1.9 million.

Although the first seven trading weeks of Q2 have been much stronger, the company said it expects tight liquidity in the second half.

“During the ramp-up phase of Tiger Palace, the board continues to assess all strategic and financial options to ensure adequate funding is available to maximize long-term value for shareholders,” CEO Mike Bolsover said in a address to investors, which was filed to the Australia Stock Exchange.

The company said Tiger Palace is now achieving steady growth in footfall, gaming and non-gaming revenue.

It is also in discussions with potential new partners in Nepal after a breakdown in relations with its original local partner led to a lawsuit.