Donaco International is proposing a name change to Pan Asian Leisure as a public statement that it’s leaving the past behind following the “unacceptable” financial performance of the last two years.
The company said it would ask shareholders to vote on the name change, as well as other measures, at an upcoming annual general meeting on Nov. 29th.
“Although the company has always remained profitable and cash flow positive during this period, revenues and earnings have declined, and significant statutory losses have been recorded, due to the non-cash impairment charges on the Star Vegas business,” the company said, referring to its Cambodian property.
“The board has taken strong action to address this decline, in two key areas: by removing and replacing the management team responsible for the operational performance during this period; and by taking legal action to protect and preserve shareholder rights.”
The board said it believed the problems stemmed mainly from breaches of the Thai vendors of Star Vegas, with whom the company is embroiled in legal proceedings.
Donaco said expert witnesses have valued the company’s claim in the amount of $240 million. In retaliation for this claim, the Thai vendor has launched a number of claims in the Cambodian courts, which have caused disruption to the Star Vegas business.
Investors will also be asked to vote on a resolution put forward by two shareholders calling for the removal of the entire Donaco executive team.