Star Vegas Thai traders attempt luck with Cambodian mediation

Three Thai shareholders of casino operator Donaco International Inc have begun arbitration proceedings in Cambodia to settle a lease dispute over land held by casino venue Star Vegas Resort and Club (pictured).

The three sold Star Vegas to Donaco in 2015. A Cambodian court has already ruled against the supplier in relation to the land lease.

Donaco on Friday announced the commencement of the Cambodian arbitration on the Australian Stock Exchange. The statement said the company was confident in its position given that the Cambodian court had taken steps to prevent shareholders from terminating the lease.

The company previously told the stock market that the Bantay Minch court had filed an injunction to prevent its landlord, Leahhoe Real Estate, Inc., from terminating its 50-year lease. Donako said the landlord, a Cambodian company, belonged to Thai shareholders who hold Cambodian passports. The shareholders said the Sombun Sukaroenkreizri alias Lee Berg Leng, Techatut Sukaroenkreizri alias Lee Berg Hui, and Bubasis Chaiarunkreizri alias Lee Berg Tong.

Donaco said the landlord threatened to terminate the lease for "suspended and false reasons" by the company. The company said it had received a court injunction application that prevented the three shareholders from illegally competing with Star Vegas in Poipet, a city near the Thai border. The shareholders have indicated they intend to appeal the injunction application.

Donaco said it was seeking $190 million in damages from three shareholders in an earlier lawsuit against Singapore arbitrators.

On June 1, Donaco told the stock market that a court in New South Wales, Australia, had extended an order prohibiting the sale of shares by three shareholders until the Singapore arbitration process was completed until Nov. 2.

Donaco said the three owned about 148 million shares, or about 17.9% of the capital issued. They sold the Star Vegas casino resort to Donaco for $360 million in 2015. Donaco claimed the three shareholders violated an agreement not to compete while continuing to run Star Vegas' nearby business, Star Paradise.

Donaco uses its patchwork approach to casino regulation in Southeast Asia to generate most of its gaming revenue. Star Vegas attracts a lot of customers from Thailand, where casinos are banned. The company's Aristo International Hotel, located in Vietnam near the Chinese border, attracts a lot of mainland Chinese players. Casino gambling is illegal in China except Macau.

BY: 우리카지노탑