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Donaco International Ltd (ASX:DNA) Receives Lender Support

Sydney, Australia, June 15, 2020 - (ABN Newswire) - Donaco International Limited (ASX:DNA.AX - News) (HAM:UGS.F - News) is pleased to confirm that the Company's principal lender, Mega International Commercial Bank Co., Ltd ("Mega Bank") has agreed to the deferral of the $US5 million principal payment due on 15 June 2020 under the Facility Agreement* with Mega Bank. The principal payment has been deferred to 31 December 2020.

Mega Bank has also granted a waiver on all June 2020 covenants under the Facility Agreement, until 31 December 2020, including that the aggregate amount of cash and cash equivalents investments of the Donaco group to be not be less than AUD$20 million at any time on or after 30 June 2020 and the Donaco Hong Kong Limited 2020 Interest Coverage Ratio and Debt to EBITDA financial covenant.

Donaco welcomes this support from Mega Bank and extends thanks for the consideration given in supporting Donaco as the Company continues to be impacted by COVID-19 related travel restrictions and subsequent reduced patronage at Star Vegas and Aristo.

As previously disclosed, Donaco continues to consider liquidity measures and sources of a capital injection to guarantee the business remains in a sustainable and dynamic position during this period of global uncertainty. The agreement reached with Mega Bank provides that the proceeds of any capital injection prior to 31 December 2020 should be used to settle the $US5 million principal payment when received.

*The Facility Agreement is between Mega International Commercial Bank Co., Ltd (Mega Bank) and Donaco Hong Kong Limited (as Borrower), DNA Star Vegas Co Ltd and Donaco International Limited (Donaco or Company) (as guarantors) dated 14 August 2017 and as amended from time to time - refer to ASX Announcement 24 June 2019 "Refinancing of Mega Bank Loan":
https://www.asx.com.au/asxpdf/20190624/pdf/44620ypqhxt7dj.pdf


About Donaco International Ltd:

Donaco International Limited (ASX:DNA.AX - News) operates leisure, entertainment and associated technology businesses across the Asia Pacific region.

Donaco's largest business is the Star Vegas Resort & Club, a successful casino and hotel complex in Poipet, Cambodia, on the border with Thailand. Star Vegas was established in 1999, and is the largest and highest quality of the Poipet casino hotels. The property has more than 100 gaming tables, more than 1400 slot machines, and 385 hotel rooms.

Donaco's flagship business is the Aristo International Hotel, a successful boutique casino in northern Vietnam, located on the border with Yunnan Province, China. Established in 2002, the property has recently been expanded to a brand new five star resort complex with 400 hotel rooms. Donaco is a pioneer casino operator in Vietnam, and owns a 95% interest in the business, in a joint venture with the Government of Vietnam.

Contact:

Investors
Leo Chan / Kurkye Wong
Donaco International Limited
Leo.chan@donacointernational.com
Kurkye.wong@donacointernational.com

Media
Shane Murphy
FTI Consulting
+61 420 945 291
shane.murphy@fticonsulting.com

Source:

Donaco International Ltd

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