Ann: Conclusion of Negotiations and Settlement with Thai Vendor, page-40

I am not against a settlement, I am just against the terms of this settlement.

What you're suggesting is that they were better off taking these terms rather than suing Somboon for everything risking the loss of Star Vegas.

Call me naive, but I think they were better off waiting for the arbitration decision in Singapore which I would assign a 90%+ probability of winning. I hold much more faith for the courts in Singapore than I do in Cambodia. Once they won that then they should have negotiated - and settled on giving away far far less.

If I was on the board, and these were the terms offered to me, I would have preferred to walk away, let the arbitration decision land, then go through the painful and uncertain legal process in Cambodia.

His case for the termination of the lease was frivolous and I would expect a higher court to overturn the initial decision, simply because of the horrible precedent it would set for all business tenants in future. i.e. You rent my land. Spend millions developing it. I'm going to close my bank account and ignore you for a couple of months, then terminate the lease.

Yes, it's a high stakes game - but just remember that it's also a high stakes game for Somboon. The main difference is that Donaco made it obvious that had no stomach for the fight so Somboon did not have to offer much at all... that much is evident in the announcement.

At the end of the day, Star Vegas and Aristo is worth much more than the $55m market cap the stock closed at today (probably 3 - 4 times as much).

As for flogging off Star Vegas, it is going to be a hard sell - who the heck is going to want to buy it with Somboon as the landlord given what has transpired.