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Echo Entertainment Group Limited (ASX:EGP) has revealed it will record a $29.9 million writedown this year because of its international high-rollers business.
The gaming company says its partner SilkStar Global Marketing was put in liquidation earlier this year and failed to repay Echo $7 million in funds.
Echo now believes the recovery of these amounts is doubtful and has also advised some of the international VIP customers introduced to Echo by SilkStar have outstanding amounts owed to Echo.
Echo has also announced it plans to hold an extraordinary general meeting on July 20, where the board intends to recommend shareholders vote against the resolution to remove John Story as a director and against the proposed appointment of Jeff Kennett as a director.
In the first half of its 2012 financial year Echo reported a net profit of $70.2 million.
