Donaco International Limited (ASX:DNA) ("Donaco") provides the following update on its legal dispute with the vendors of the Star Vegas casino business in Cambodia.
Arbitration Proceedings over Lease Matters
As announced to the ASX on 12 June 2018, Donaco has recently been granted an injunction in its favour by the Banteay Meanchey Court of First Instance in Cambodia, to prevent the vendors of the Star Vegas business from threatening to terminate the lease of the land on which the Star Vegas sits. This injunction remains in force for an indefinite period of time, unless it can be overturned by another court or arbitration ruling.
The vendors have committed a number of breaches of the lease agreement, specifically by encroaching on the land leased to Donaco. In return the vendors have alleged that Donaco has committed various breaches of the lease.
The vendors have now commenced arbitration proceedings in Cambodia over these disputed matters under the lease. Donaco is confident of its position in the arbitration proceedings, especially given the judgment already made in its favour by the Cambodian court.
Donaco International Ltd Ben Reichel Executive Director T: +61-412-060-281 WWW: www.donacointernational.com
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