APE Macau terminates two lease agreements after failure HK$26 mln missing in lease rentals

Local gaming equipment supplier Asia Pioneer Entertainment Limited (APE Macau) announced it had to terminate the lease agreements held by two companies after they failed to pay HK$26 million (US$3.3 million) in lease rentals.

APE Macau, a wholly-owned subsidiary Asia Pioneer Entertainment Holdings Limited, had entered into two finance lease agreement on December 2018, one with Siam Star Leisure Co., Ltd for leasing of certain electronic gaming equipment (EGEs) for use at a casino in Cambodia and in a finance lease agreement with GLIMEX INC on December 2018 for leasing of certain EGEs for use at a casino in the Philippines.

According to a Hong Kong Stock Exchange, announcement signed by Executive Director, Allen Tat Yan, after After Siam Star and Glimex failed to pay APE Macau lease rental of approximately HK$17 million and HK$9 million, respectively, under the finance lease agreements, the agreements terminated on May 21 2020.

In April the company had stated that the companies might face problems paying lease rentals due to the impact of the Covid-19 pandemic in the gaming sector, as casinos in the Philippines and Cambodia had suspended operations from March 16 to April 1 of this year.

APE Macau will now write off an aggregate of approximately HK$26 million finance lease receivables from its accounts for the six months ending 30 June 2020 and upon termination of the agreements, it has exercised its rights to demand the return of the EGEs leased.

APE Macau stated it intends to identify new lessees for the EGEs in Macau or other South East Asian countries.