Last year, we wrote about the NSW Supreme Court freezing order
granted to preserve 148 million shares in ASX-listed Donaco
International Limited, pending the outcome of arbitration in
Singapore. The arbitration concerned Donaco's purchase of the
Star Vegas, a Cambodian casino. Donaco alleges that the Thai
vendors breached a non-compete clause in the sale agreement by
continuing to operate a neighbouring casino, as well as a secret
casino hidden behind a supermarket façade. The vendors are
counterclaiming for damages.
Donaco goes all in
By way of update, Donaco has recently increased its claim to
US$240 million but the proceedings continue to suffer lengthy
delays. Although the average duration of a sole arbitrator claim in
Singapore is 11-12 months from filing to final award, in this case,
at the time of writing, more than 18 months have passed since
Donaco filed the claim. As there is reportedly a further four-month
delay for reasons unknown (due to the
