Asia Pioneer Entertainment said it was cancelling lease agreements to casinos in Cambodia and the Philippines due to non-payment of rent and said it will write off about HK$26 million ($3.4 million) in the first half as a result.
The company said the leases related to an accord entered with Siam Star Leisure in 2018 for a casino in Cambodia and an accord with GLIMEX Inc. for the provision of electronic gaming machines in the Philippines.
As of the date of the May 21 announcement to the Hong Kong Stock Exchange, Siam Star failed to pay lease rental of about HK$17 million and GLIMEX owed $9 million. Under the terms of the contract, the leases could be cancelled without the need for notice.
APE is now demanding the return of the machines and said it will seek out new lessees in Macau, or other Southeast Asian companies.
Last month, the group reported a loss for the first quarter of $4.1 million, compared with a loss of $1.9 million the year earlier due to the slowdown of orders due to the Covid-19 crisis.
Revenue in the period plunged 70 percent to $2.4 million.
For this edition of our magazine, we focus on Southeast Asia, with a particular look at the Philippines. The country’s casino industry has been among the hardest hit in Asia, with the integrated resorts in Manila’s Entertainment City having remained mostly closed to the general public since the beginning of the crisis last year.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.