Asian casino operator, Donaco International Limited, has declared a court has issued an injunction against a trio of shareholders which have been attempting to terminate the 50-year rental for the land inhabited by its Star Vegas Resort and Club.
Based on a Tuesday filing (pdf) from Donaco International Limited, the Banteay Meanchey Court of First Instance granted its request for the injunction against Cambodian nationals Lee Bug Leng, Lee Bug Huy and Lee Bug Tong, which own Lee Hoe Property Company Limited, after they had threatened to end the rental for the venue from the border town of Poipet ‘on contrived and spurious motives.
The operator said that Lee Hoe Property Business Limited is a Cambodian business and the injunction follows the issuance of an identical control which prohibits the organization from ‘engaging in illegal competition from the Poipet region.
“The sellers have indicated they plan to appeal against that preceding injunction but the appeal process has not commenced yet,” browse the submitting from Donaco.
GGRAsia reported the three businessmen, who also hold Thai citizenship in addition to a roughly 17.9percent shareholding in Donaco, marketed the Star Vegas Resort and Club to the Sydney-listed operator in 2015 for approximately $360 million however supposedly breached the bargain rsquo;s non-compete clause shortly after by opening a nearby venue called the Star Paradise via their Lee Hoe Property Business Limited concern.
The business now operates 1,400 slots and approximately 100 table games within the 385-room Star Vegas Resort and Club while being in charge of northern Vietnam’therefore, Aristo International Hotel. The submitting detailed the company intends to continue prosecuting a ‘compensation claim against the sellers through mediation proceedings in Singapore’ and has lately increased its total request by $70 million to $190 million.
“The arbitration proceedings are confidential and not reported but Donaco [International Limited] will keep the market informed of developments which are material to shareholders,” browse the June 12 filing.