Donaco board approves new US$5m loan facility

Donaco board approves new US$5m loan facility

The loan was judged to be the best source of funding to provide immediate financial stability to the company.

Australia.- Donaco International has announced that its board has approved a shareholder loan facility of AU$7m (US$5m) from CEO and executive director Lee Bug Huy. The loan will allow ongoing protection of the balance sheet to ensure the company remains sustainable until the general situation improves.

It is an unsecured loan facility with no specific repayment schedule that Donaco will repay once working capital is available. The final redemption date is 48 months after the first withdrawal, and the final redemption date can be extended for a further 8 months upon request. The interest rate is 6 per cent per annum.

According to the company, Huy offered financial assistance to the company while casino operations remain limited due to the Covid-19 pandemic. The company’s Star Vegas casino in Cambodia has been closed since April 27, 2021, while Aristo Casino in Vietnam has been open on a limited basis since May 8, 2020. 

Donaco expected Star Vegas to open again by now, but the company has yet to receive official instructions on when it will be allowed to resume operations.

Donaco’s non-executive chairman Paul Porntat said: “We are optimistic about Donaco’s long term future. We are almost at the end of this bumpy journey, and I’d like to sincerely thank our shareholders for your patience.”

Donaco posts revenue of AU$0.2m for Q1

Donaco International has reported an EBITDA loss of AU$1.4m for the first quarter, compared with a loss of AU$0.29 in the same quarter last year. Revenue was AU$0.2m.

The board is considering additional balance sheet protections to ensure the company remains sustainable until the situation improves.

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