The court proceedings filed for by Amax International in relation to Greek Mythology – operator of the Greek Mythology casino (pictured), in Imperial Beijing Palace – are estimated to take ‘nine to twelve months’ before they could result in a ‘court order from the Macau Court’, according to a filing from the company with the Hong Kong Stock Exchange.
This comes after a Monday filing with the stock exchange in which the company disclosed it had submitted an application ‘to the Court of Macau, SAR for a court order to appoint Mr. Ng Man Sun, the Chairman and Chief Executive Officer of the Company (Amax), as the administrator of the Associate (Greek Mythology)’.
‘If the court order is granted, the company would have access to the financial information of Greek Mythology and participate in the management of Greek Mythology,’ notes the most recent filing.
Having discussed this with the auditors, the company notes that ‘if sufficient documents were revealed, the audit issues of the company’s interest in Greek Mythology and share of results of Greek Mythology; and recoverability of amount due from Greek Mythology and valuation of intangible assets could possibly be resolved’.
Amax International has been unable to accurately calculate its financials ‘due to Greek Mythology’s refusal to provide the Company with its valid financial information since 2012,’ the Monday filing reiterated.
The board notes that in light of the auditors’ view the company has recognised impairment losses from Greek Mythology for the financial year ended March 31 2017 of HK$901.2 million – ‘comprising HK$837.6 million impairment loss of interest in Greek Mythology and HK$63.6 million impairment loss of the amount due from Greek Mythology’.
The group notes that it ‘is unable to estimate the timeframe as to when the company could get direct access to the financial information of Greek Mythology,’ but that it is ‘continuing to consider taking all steps appropriate to resolve the Greek Mythology issues’.
The company’s finances for the financial year in question demonstrate a HK$988.52 million loss, with HK$983.87 million of this attributable to owners of the company. This compares to HK$48.97 million last year, before Greek Mythology’s losses were included. Revenue for the year was just HK$11.4 million albeit an uptick from the MOP10.48 million see last year.
Given the loss, and the fact that the group’s ‘current liabilities exceeded its current assets by HK$177,796,000’ the group notes that ‘a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern’.
The group’s newly commenced Vanuatu gaming operation was largely responsible for Amax’s revenue, it points out, although imposing upon it an impairment loss of HK39.6 million for its gaming licence for the financial year.
The group in March acquired mobile game applications via a subsidiary, with the recent filing noting that it ‘is yet to commence the operation of the mobile game applications,’ as they ‘were still under development and testing stage as at March 31’.
The games are ‘specifically built for mobile devices users for playing gambling and on-line/off-line players,’ with a ‘useful life’ of 10 years and in the financial year results amounted to a HK$2.3 million impairment.