Asian casino operator, Donaco International Limited, has announced that a Cambodian court has issued an injunction against a trio of shareholders that have been attempting to terminate the 50-year lease for the land occupied by its Star Vegas Resort and Club.

According to 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 lease for the venue in the border town of Poipet ‘on contrived and spurious grounds.’

The operator stated that Lee Hoe Property Company Limited is a Cambodian enterprise and that the injunction follows the issuance of a similar command that prohibits the company from ‘engaging in illegal competition in the Poipet area.’

“The vendors have indicated that they intend to appeal against that previous injunction but the appeal process has not commenced yet,” read the filing from Donaco.

GGRAsia reported that the three businessmen, who also hold Thai citizenship as well as an around 17.9% shareholding in Donaco, sold the Star Vegas Resort and Club to the Sydney-listed operator in 2015 for approximately $360 million but allegedly breached the deal’s non-compete clause soon after by opening a nearby venue known as the Star Paradise via their Lee Hoe Property Company Limited concern.

The company currently operates 1,400 slots and about 100 table games inside the 385-room Star Vegas Resort and Club while being responsible for northern Vietnam’s, Aristo International Hotel. The filing detailed that the firm intends to continue prosecuting a ‘damages claim against the vendors via arbitration proceedings in Singapore’ and has recently increased its total request by $70 million to $190 million.

“The arbitration proceedings are confidential and not publicly reported but Donaco [International Limited] will keep the market informed of all developments that are material to investors,” read the June 12 filing.

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