Australia-listed Donaco International said it’s conducting a strategic review of its businesses, including a potential restructuring of an almost $40 million debt to Mega Bank.
In a filing to the stock exchange, the company said the review was triggered in part by the plunge in its share price, which it says is in no way reflective of the value of its assets.
The company operates the Star Vegas casino in Cambodia and the Aristo International property in northern Vietnam.
Donaco said it was looking at ways to restructure, or eliminate the Mega Bank debt to help free up cash flow for management initiatives. The debt is secured on Star Vegas and not on Aristo.
The company says it’s in discussions with several parties, who have suggested options to unlock value. The strategic review is expected to take about three months, it said.
Donaco’s share price jumped almost 90 percent on the news to A$0.07, though was rebounding from a 52-week low of $0.036.
Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.
ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264