U.S. gaming company Rotte & Waging Solutions Inc. announced Friday that it is in the process of terminating all of the company's casino operations in Suriname.
Upon the board's decision, the board announced on February 21, 2005, that it had entered into an agreement to sell its 100% subsidiary operating a small casino at the Parramaribo Golden Tulip Casino Hotel for US$500,000.
Until December 31, 2004, Suriname's major business was carried out through its subsidiary Suriname Leisure Company (SLC) at the Parramaribo Plaza Hotel. SLC is a 50-piece joint venture with Handelmatschapiz of Suriname Company Pavo, which operated the Suriname Palace Casino.
Partners suffered from financial differences. On January 1, 2005, the Palais Casino was evicted from its building inside the Plaza Hotel in Parramaribo, forcing it to close all operations. The Suriname Court ruled that the plaintiffs in the eviction proceedings, who obtained ownership of the Plaza Hotel in the foreclosure proceedings, were not bound by SLC's existing lease. The lease was 15 years.
Administrative fees paid to Dorsett Hotels & Resorts, Inc. to manage the operations and operations of Palace Casino have historically been a significant part of the U.S. gaming company's recent operations and cash flows
An eviction appeal is still pending to restore the Palace Casino to a building within the Plaza Hotel and, if successful, restore the lease, but the board concluded that the termination of operations was in the company's best interest because the company's extensive efforts to identify and secure a suitable replacement site for Suriname were unsuccessful.
Meanwhile, Rotte & Waging Solutions postponed the preparation of its financial statements and the submission of its quarterly report for the period ended December 31, 2004 to properly reflect the Board's decision to terminate the Suriname business in its financial statements.
The move to close all of Suriname's businesses comes as a complete surprise to its business partner, Gautam Pavo. In an interview with Caribbean Net News, Suriname's businessman said he was very surprised because he seized all of the casino's possessions during the lawsuit.
Efforts to side with Palace Casino have come to nothing. Relations between the partners have soured as Fabo's Handelmatschafiz accused U.S. casino executives of obstructing profits. Fabo's Handelmatschafiz, which owns the casino license, has since withdrawn its license for the joint venture. 카지노사이트
In December 2005, authorities ordered the Palace Casino to suspend all activities until it could present a valid license. Since last week, casino license holders in Suriname have been busy meeting the government deadline. If license holders do not receive their licenses by Monday, Feb. 28, 2005, their licenses will become invalid.