Hong Kong-listed Century Entertainment said it expects the Dara Sakor casino in Cambodia to open in October and that cash flow from the tables will be sufficient to cover operating costs.
The company made the comments in a lengthy note explaining the outcome of discussions with auditors as to whether the business remains a going concern.
Century had been planning to operate mass tables at a casino in the gambling hub of Sihanoukville. However, it switched plans to transfer the tables to the Dara Sakor casino. The opening of the resort and subsequent transfer has been repeatedly delayed due to Covid.
The company said it has been informed that training and testing of the casino systems will start in Sept, with the gaming business to begin operations in October. In the early stages it foresees operating two tables.
The final number of tables to be operated will be decided once conditions met in a Supplemental Framework Agreement are met, it said.
“Upon the commencement of the gaming table business, the projected annual net cash inflows are sufficient to cover the expected annual operating costs of the group,” it said.
In June, Century reported that its 2020 loss widened to HK$43 million from $38.1 million the prior year as revenue slumped due to Covid and it recorded impairment charges.
Revenue was $0.7 million down from $45.9 million.
The company also outlined other measures it’s taking to improve its financial position, including negotiating with creditors to propose restructuring of its debt, as well as a proposal to ask its CEO and Chairman to convert a convertible bond into equity prior to maturity.
The China-backed Dara Sakor Seashore Resort is an integrated resort development located in Cambodia’s West Coast, around five-hours drive from the capital Phnom Penh.
Work on the mammoth project began in 2008 after Cambodia leased 45,000 hectares of a national park to China’s Tianjin Union Development Group (UDG) for a period of 99 years.