Donaco gets permission to reschedule repayment of debts

Donaco's revenue fell to AU$2.8 in Q1 due to Covid-19 restrictions.
Donaco's revenue fell to AU$2.8 in Q1 due to Covid-19 restrictions.

A Key lender, Mega International Commercial Bank Co, has allowed Donaco International Ltd to reschedule repayment of a debt.

Australia.- Donaco International Ltd has gained approval to reschedule the repayment of a debt owed to Mega International Commercial Bank Co.

The company originally borrowed US$100m in Australian dollars in 2015. With June’s payment already made, Donaco now owes US$6.8m.

The repayment will now be made through six monthly payments of US$1m until November and a final payment of US$1.8m in December.

In April, Donaco reported that revenue for the first quarter of the year 2021 was down from AU$6m in the previous quarter to AU$2.8m. EBITDA for the quarter was AU$0.29m.

The Australian-listed operator said the arrival of second and third waves of Covid-19 cases in Cambodia and Thailand had affected its revenues and EBITDA.

Donaco’s Star Vegas casino closed its doors in April along with other casinos in Poipet amid new Covid-19 countermeasures.

The company has borrowed US$8.2m from Lee Bug Huy, the firm’s chief executive and an executive director, to be repayable over the next three years on terms similar to those of the Mega Bank facility.

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