Ann: Reopening of Aristo International Hotel Casino Operations, page-112

Donaco will be rudderless soon with the departure of Mr. Arbuckle on 4/6/20. Whilst in the last quarterly reference was made to consideration for a new CEO from a number of highly skilled candidates, there has been no news yet on having selected one. Being a small company, one would think that the selection process approaching six months would be long enough to finalize an appointment - cutting it fine - one positive - don't have to feed another mouth yet. However, is there another reason why this hasn't been completed??

Dealings with Megabank is a bit of a puzzle - they know the position that Donaco is in and I'm sure they have similar scenarios at hand due to shutdowns and business downturns. Donaco's casinos may and/or have reopen/ed by the deadlines in place but might take a few quarters to ascertain cash flows and hence certain uncertainty as to debt repayment ability.

In Donaco's favour is that the company has been repaying portions of the debt and that legal wrangling costs are now out of the way. The best way forward for Donaco may just be a deferment of any loan repayment liabilities for at least 12 months thus allowing Donaco to get back on its feet. How any agreement with Megabank reflect this will probably depend on how Megabank views Donaco's capabilities in fulfilling its obligations. and its own internal mechanisms with respect to risk management.

Lets hope for holders's sakes that the bank doesn't get too greedy. NTA is fine and dandy but in any fire sale its pretty meaningless.

In any event, delays with both incumbent CEO appointment and lack of news with Megabank's dealings is I'm sure leaving a few holders a little nervous. Will we be dealt a royal flush or flushed down the toilet?? If Donaco management have a wild card - it's about time they use it.