Donaco Casino International, operator of Poipet’s Star Vegas Resort casino in Poipet, has announced it will not post a statutory net profit for the second half of 2017 or all of 2018, according to regional gaming news site GGR Asia.
The company will post a $113 million impairment charge – a revaluation of a ‘goodwill’ asset, such as a brand name – which stemmed directly from a dispute with a former Thai business partner.
Donaco, which has not named the offending party, claims that the former business partner, continued to operate the nearby Star Paradise casino after an agreement with Donaco had expired.
The company accused the business partner of breach of contract and sought an injunction in Cambodian court in November. It has also filed for more than $100 million in damages in Singaporean court, according to GGR Asia.