b'NOTES TO THE FINANCIAL STATEMENTS >for the year ended 30 June 2019NOTE 39. CONTINGENT ASSETSParamax Co., Ltd, a vendor-related entity, filed a merit case AND LIABILITIES petition against Donaco in Cambodia, requesting that the court order Donaco to refrain from publishing news related COURT PROCEEDINGS to the operations of the Paramax casinos, issue an apology letter and to pay USD1.1 million (equivalent to AUD1.6 million) Proceedings against Somboon Sukcharoenkraisri (the vendor)as compensation. There have been three pre-hearings for this for breach of non-competition clauses under the agreementsmatter between September and December 2018, however the of the sale and purchase of Star Vegas are still in process.hearing date is still to be determined.The company obtained an injunction on 25 December 2017, ordering the closure of the Star Paradise and Star ParamaxThe vendors are also joint owners of a Cambodian company, casinos which were illegally operated by the vendor. A furtherLee Hoe Property Co., Ltd (lessor), which owns and leases the appeal was submitted to a higher court by the vendor,land occupied by the Star Vegas business. Threats were made contesting against the injunction. On 5 October 2018, theby the vendor to terminate the lease, however an injunction injunction was removed, but this is not a judgement on theagainst this was granted in favour of the company. The merits of the claim. The vendor had also attempted to seekvendor has commenced arbitration proceedings in Cambodia security rights over certain assets of Star Vegas in relation towhich were heard at an oral hearing on 28 February 2019. The his claim for the unpaid FY17 management fee, however thisarbitrator has extended the timeframe for making an awardwas rejected by the court on 6 July 2018. in this matter, pursuant to the Cambodian arbitration rules. An award was received on 21 August 2019. The arbitrator ruled that the lessor is entitled to terminate the lease. This decision is not enforceable unless it is affirmed by a court. The decision has already been appealed.Having consideredOn 20 August 2018, the lessor obtained an order allowing itto develop the land outside the Star Vegas boundary, which expert legal and financialwas always agreed under the lease, provided that no competing casino or gaming business is built. The vendor has also advice, the companycommenced defamation proceedings in Thailand against Donaco and two of its directors, seeking damages of THB1 million (equivalent to AUD48,000). No amounts have been recognisedinitially sought damagesas at 30 June 2019 in relation to these proceedings as they are still in the early stages and no damages have been determined.of USD190 millionDonacos legal claim against the vendor has been set down for arbitration proceedings in Singapore. A nine-day hearing was (equivalent to AUD271scheduled to commence on 29 July 2019. The hearing was not completed and a further hearing has been set for one week million), however basedcommencing 25 November 2019. Having considered expert legal and financial advice, the company initially sought damages on final valuation reportsof USD190 million (equivalent to AUD271 million), however based on final valuation reports provided by expert valuation witnesses, the claim can be increased to USD240 million provided by expert(equivalent to AUD342 million). No amount receivable has been recognised as at 30 June 2019 given the uncertainty over the valuation witnesses, theoutcome of the proceedings. The Supreme Court of New South Wales has granted a further extension of the freezing order over claim can be increased tothe Donaco shares held by the vendor until 4 October 2019.The consolidated entity has no contingent liabilities which are USD240 million (equivalentrequired to be recognised as at 30 June 2019.to AUD342 million).84 DONACO INTERNATIONAL LIMITED 2019 ANNUAL REPORT'