In Singapore and a tribunal has reportedly ruled against Bloomberry Resorts Corporation and ordered the Filipino casino operator to pay just over $296 million to a subsidiary of American entertainments firm Global Gaming Asset Management LLC.
According to a Wednesday report from GGRAsia, Bloomberry Resorts Corporation is responsible for Manila’s Solaire Resort and Casino and inked a deal in 2011 that saw Global Gaming Philippines LLC tasked with providing the 800-room property with a range of management services covering such areas as design, construction and recruitment.
GGRAsia reported that Las Vegas-headquartered Global Gaming Asset Management LLC is led by a team that includes a former President and Chief Operating Officer for Las Vegas Sands Corporation, William Weidner, and its local arm was due to pocket approximately $175,000 a month for supplying advise to Bloomberry Resorts Corporation and the casino firm’s Bloomberry Resorts and Hotels Incorporated and Sureste Properties Incorporated subordinates.
But, the Manila-listed casino operator reportedly abruptly cancelled this arrangement shortly after opening its Solaire Resort and Casino in March of 2013 over ‘failure of discussions’ and ‘material breach’ claims against Global Gaming Philippines LLC. This move purportedly immediately led the consultant’s parent to file a lawsuit alleging that the casino operator was ‘not justified’ in terminating the alliance and should be forced to pay a range of damages, costs and pre-termination expenses and fees.
In finding for the claimant, the three-member tribunal reportedly ruled that Bloomberry Resorts Corporation is now liable for $85.2 million in damages as well as some $15.4 million in fees. As if this wasn’t bad enough, the Singapore body purportedly decreed that the casino firm is moreover on the hook for 921.2 million shares worth approximately $195.6 million that Global Gaming Philippines LLC holds in its Philippines business.
Reportedly read a statement from Bloomberry…
“If [Bloomberry Resorts Corporation] do[es] not pay for the shares, Global Gaming Philippines LLC may sell the shares in the market and [Bloomberry Resorts Corporation is] directed to take all steps necessary to facilitate this sale. [Bloomberry Resorts Corporation] will be liable for the difference in the selling price if it is less than the awarded price.”
However, Bloomberry reportedly reacted to the news by declaring that the decision was ‘fundamentally flawed in numerous respects’ and would only become enforceable if ‘confirmed by a court.’ As such, it purportedly proclaimed that the ruling ‘may be enforced in the Philippines only through an order of a Philippine court of proper jurisdiction’ and that it was now ‘considering its options in Singapore and elsewhere with respect to the final award on remedies.’