An Australian court has stopped three Thai vendors of the Star Vegas casino business in Cambodia from disposing their shares in casino operator Donaco International Limited, which is now part of a legal claim.
Donaco announced on Tuesday that the Supreme Court of New South Wales recently issued a freeze order on some 148 million Donaco shares held by several Thai vendors upon the request of the casino operator.
The vendors were identified as Somboon Sukcharoenkraisri, who also had a Cambodian passport under the name of Lee Bug Leng; Techatut Sukcharoenkraisri, also known as Lee Bug Huy in Cambodia; and Bhuvasith Chaiarunrojh, who uses a Cambodian name Lee Bug Tong.
In his order, Justice James Stevenson restrained the Thai vendors or their representatives from either selling or disposing of the shares until the Singapore arbitration court issued a final resolution on Donaco’s complaint.
Donaco said the frozen shares of three respondents represented approximately 17.9 percent of company’s issued capital.
The Asian casino operator gave out little details on the case it filed before the arbitration court, except that it was seeking US$120 million in damages from the respondents.
Previous financial showed that Donaco had entered an agreement with the Thai vendors of Star Vegas for the casino operator to oversee a property called Star Paradise.
Donaco began operating Star Paradise in September 2016 with 40 tables, according to earlier filings. Star Paradise is located adjacent to the Star Vegas property, which the Australia-listed firm acquired in July 2015 from the same Thai business partner.
In its deal to acquire Star Vegas, Donaco said the parties agreed that the Star Paradise gaming venue could not operate without Donaco’s consent. Donaco, however, claimed that the Thai vendor breached their non-competition clause agreement by continuing to conduct gaming operations at the Star Paradise following the demise of their arrangement.
Last December, Donaco scored a major legal victory against the Thai vendors after the Cambodian court issued an interim injunction to close Star Paradise.
Meanwhile, the Australian court has scheduled the continuation of the interlocutory order’s hearing on April 6.