Amax International Holdings Limited is a successful gaming company (Hong Kong Stock Exchange) that invests in the gaming business and provides its customers with luxurious entertainment and leisure. Their registered office is in Hamilton, Bermuda. Amax International plans to expand its business beyond the Asian region. Their association with Greek Mythology Casino was the burning issue for many years, and now the story has unfolded.
Greek Mythology Casino
Amax International used to have ownership over the 24.8% equity interest in the casino, which is situated in Beijing Imperial Palace Hotel, in Tai Pa, Macau. Greek Mythology Casino offered almost two dozen gaming rooms for VIP players and a rich gaming floor that aimed at regular customers from many Asian regions. They were temporarily shut down back in 2015, but they were permanently closed since January 2017. The reason they were closed is that they had lost their license due to failure to meet a few Macau regulations. One of the many problems had to do with illegal structures.
Since they’ve experienced severe losses in the past few years, Amax International Holdings decided to put an end on the story between them and Greek Mythology Casino. They were obviously very patient and understanding regarding this issue, but things got rough when their losses began to increase year after year. In June 2018, their impairment losses and the amount due from Greek Mythology casino were HKD901.2 million ($114.85 million).
The End of Amax International and Greek Mythology
According to their claims, the 24.8% equity interest they owned is now sold to investment firm Fu Po International Ltd. in Macau. Their attempts to receive audited financial statements from the previous management of Greek Mythology (Macau) Entertainment Group Corporation Limited had failed, so they gave up. It was only a matter of them when they would stop trying to repair what was already damaged. Greek Mythology Casino was sold for a very small sum of money, and Amax International suffered $45.1 million impairment related to Greek Mythology interest, and $3.63 million due.
All Amax International Holdings had to say regarding this subject is that the board considers that the impairment and the disposal of Greek Mythology Casino could be fixed once they finally resolve audit issues they’ve avoided for so long. Those issues were caused by the auditor who was prolonging to disclaim his opinion on the company interest along with the amount due. After this unpleasant experience, Amax International Holdings will focus on its casinos in Vanuatu and Cambodia and try to make the best out of what they have.
Even though it seems like these impairments were very severe and potentially harmful for Amax International Holdings, HKSE filing claims that they’re not expected to harm their bottom line. According to the board, these issues are one-time and don’t have a long-term impact on their business. They’re also non-cash in nature, which means that Amax International won’t have troubles regarding their cash flow or any other business operation.
This is the end of a long and rocky road for Amax International, but there is no reason to worry about their progress in the future.