Asian casino operator, Silver Heritage Group Limited, has announced that it is to receive some $5.25 million in compensation after agreeing a deal linked to the recent closure of its gaming operation inside northern Vietnam’s Phoenix International Club.
The Sydney-listed firm used an official Tuesday filing (pdf) to detail that it had been responsible for a casino inside the property near Hanoi but was forced to shutter this operation earlier in the month due to a failure on the part of its local partner in the venture ‘to maintain the gaming license.’
Silver Heritage’s filing stated that the arrangement with the unnamed colleague represents a ‘full and final settlement of all claims and rights’ tied to its previous alliance and will also involve the entire transfer of its ‘gaming assets’ inside the Phoenix International Club to the owner of the property.
The filing from the Hong Kong-headquartered operator explained that the compensation amount, which it is to receive via two separate installments, represents approximately two years’ worth of the earnings before interest, tax, depreciation and amortization it had expected to make from the venue in Vietnam. However, the group declared that it still expects to book an around $1.2 million shortfall on the deal due to some $6.5 million in losses associated with the recent shutdown.
Despite this, the filing affirmed that it believes the compensation deal to be ‘generally favorable having regard to all circumstances’ and that it now intends to ‘cease operations in Vietnam.’
According to a Wednesday report from GGRAsia, the casino inside the Phoenix International Club had accounted for about 45% of Silver Heritage Group Limited’s unaudited annual revenues although the firm is said to have revealed in January that this operation had recently been performing ‘below budget expectations.’
Established in 2003, Silver Heritage opened its Tiger Palace Resort Bhairahawa casino resort a little over a year ago and is furthermore responsible for gaming operations at The Millionaire’s Club and Casino inside Kathmandu’s Shangri La Hotel and Resort. It is additionally hoping that the next few years will see it further grow its presence in Nepal via the construction of its gambling-friendly Tiger Palace Resort Jhapa on an 18.4-acre parcel of land in the extreme southeastern corner of the Himalayan nation.