The Lim family have given up their share of Donaco International. The Malaysia-based Lims held 27.25% in the casino operator, but have now relinquished them to third parties, according to a filing with the Australian Securities Exchange (ASX).
Vincent Pirina and Mitchell Mansfield have been appointed as “joint and several receivers of approximately 224 million” Donaco shares that were “formerly controlled by the Lim family,” explains the filing. The appointment of the receivers was made by Madison Pacific Trust Ltd., the security trustee for OL aster (Singapore Fund 1) Pte. Ltd. That appointment was made “pursuant to certain financing agreements with entities controlled by Mr. Joey Lim.”
Donaco is aware of the transfer and stated yesterday that it might be viewed by Donaco’s Taiwan-based lender, Mega International Commercial Bank Co. Ltd., as a “change of control” according to terms defined in a loan agreement. Donaco added, “If so, the loan may become due and payable sooner than the currently scheduled repayment dates … The company will discuss this issue with Mega Bank, and keep the market informed of all developments.”
Last December, Donaco informed the ASX that it was contemplating its options regarding a debt of $39.9 million it held with Mega Bank. That debt is secured by firm’s Star Vegas Resort and Club, located in Poipet, Cambodia.
That same month, the company’s managing director and CEO, Joey Lim Keong Yew, temporary vacated his positions with Donaco. That move came as a result of health issues, and he was replaced by his brother, Ben Lim Keong Hoe.
Donaco added on Monday, “The appointment of receivers over these shares has no impact on the management or operations of the company. The board has agreed that Mr Ben Lim will remain as interim managing director and CEO until the end of March 2019.”
Earlier this month, Donaco announced that its bottom line was still suffering due to ongoing litigation in Cambodia. It was able to reduce its net loss from the previous year, down to only $26.09 million, but the losses were attributed to an impairment of $27.08 million because of the battle being waged against a former business partner, Lee Hoe Property, over the land where the Star Vegas resides.