Casino operations halt in Cambodia : liquidity of Naga World can still support 18 months of operating expenses

 The company is considering conducting an offering of notes to investors to boost liquidity

Naga World announced that in accordance with the relevant instructions of the Cambodian government, the company's casino has been suspended from April 1 this year until further notice by the Ministry of Economy and Finance. The company is currently operating the Naga 1 hotel with a low occupancy rate and limited catering facilities. The Naga 2 hotel is now closed. Naga City's tax-free business is still in operation.

 

The company is currently operating the Naga 1 hotel with a low occupancy rate and limited catering facilities.

 

Before the casino closed, the company's average monthly expenditure was $18.4 million for the three months ended March 31 this year. In addition, the company generates monthly gaming liability and non-gaming liability payments of $900,000. The company has taken and is expected to continue to take a series of measures to minimise cash expenditure. After the implementation of these measures, the company expects the estimated operating costs per month to be 3.9 million US dollars. As of March 31 and May 31 this year, the company's cash deposits was 464.9 million US dollars and 527.1 million US dollars.

It is expected that after the proposed bills take effect, the company's liquidity capital can support about 18 months of operating expenses and interest expenses with little revenue. In the future, the actual cash operating expenses of the company may be affected by unexpected events beyond its control.

In addition, Naga World recommends the issuance of debenture. The priority is to issue non-convertible debentures. The group intends to redeem some or all of the outstanding 2021 debentures. Tan Sri Dr Chen Lip Keong promised to subscribe to debenture of up to US$45 million through ChenLipKeong Capital Limited, a wholly-owned subsidiary, to show his support and confidence in the group.

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