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Casino op Silver Heritage provides $1 million in working capital loans

Asian casino operator Silver Heritage Group Ltd said it had received US$1 million worth of mortgage loans from the majority of bondholders. The money, offered on multiple terms, will be used as working capital, according to a filing with the Australian Stock Exchange on Friday.

The cash will be used "in accordance with the budget agreed between the company and lenders for all costs and expenses of the group outside Nepal over the next six months," the document added.

In September, the group said it was continuing to negotiate a possible sale of its Nepalese operations but was negotiating "non-exclusive".

Silver Heritage owns and operates Tiger Palace Resort Bairahawa, a casino property on the border between Nepal and India. The group also runs games at Millionaire's Club and Casino in Nepal's capital, Kathmandu.

Silver Heritage lost money in early March after local authorities said it no longer allowed table games there, having been a key game revenue generator for a group called Casino Management at Phoenix International Club near Hanoi, Vietnam.

Later that month, Silver Heritage announced that it would receive US$5.25 million in compensation from a former partner in its Vietnamese business.

The newly announced loan to Casino Group comes with significant terms. The advance interest is 15% per annum and will be paid at maturity, with the latter date of December 31, 2021.

The loan providers are OL Master (Singapore Fund 1) Pte Ltd, Orchard Landmark II (Singapore Fund 1) Pte Ltd, and OL Master Ltd, which are multiple bondholders of the Company under the Bond instruments dated August 26, 2016. They also hold 9.46% of the capital of Silver Heritage issued shares.

The lenders are also being granted options of just over 189 million shares of the company at a strike price of A$0.0078 ($0.00545) per share of common stock that "does not require shareholder approval," according to Friday's filing.

Friday's announcement summarized that the maturity of existing bonds will be extended from April 2, 2021 to December 31, 2021. It also said interest maturing under existing bonds will be "capitalized" on the next two interest payment dates, Feb. 26, 2020 and Aug. 26, 2020.

Existing financial contracts were also set to be replaced by several specific milestones, according to Friday's filing.

By September 2020, the last nine months of group adjusted earnings (EBITDA) before interest, taxation, depreciation and amortization should be "at least US$50,000".

By December 2020, the last 12 months of Group Adjusted EBITDA should be "at least US$1.2 million." As of March 2021, the last 12 months of these EBITDA should be at least US$2 million, by June 2021 US$2.5 million, and by September 2021 the last 12 months of Group Adjusted EBITDA should be at least US$3 million.

BY: 릴게임

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