Former partner of Bloomberry can claim 8.7% stake in Solaire
MANILA, Philippines – An arbitration tribunal in Singapore has ruled that units of Bloomberry Resorts Corporation's former partner in managing the Solaire Resort & Casino can claim ownership of an 8.7% stake in the company.
Bloomberry said in a disclosure to the Philippine Stock Exchange that the Singaporean Arbitration Tribunal issued partial award on the ongoing dispute between the Bloomberry Resorts and Hotels Incorporated (BRHI) and Sureste Properties Incorporated as well as Las Vegas-based company Global Gaming Philippines LLC whose partnership turned sour on allegations of breach of contract.
Global Gaming is headed by former Las Vegas Sands President Bill Weidner and other ex-Las Vegas Sands officials.
The arbitration court said there is no basis for Bloomberry and Sureste to challenge Global Gaming's title to the 921,184,056 Bloomberry shares “because the grounds for termination were not substantial and fundamental, thus GGAM can exercise its rights in relation to those shares, including the right to sell them.”
Bloomberry in April 2012 signed a 5-year management service agreement (MSA) with Global Gaming. (READ: Razon bets on better PH gaming climate in 2016)
But the following year, Bloomberry terminated its management agreement with Global Gaming because of “material breach” of contract.
Bloomberry had said that Weidner's Global Gaming "failed to perform its obligations and deliverables under the MSA."
The move prompted Global Gaming to file an arbitration case against Bloomberry in Singapore.
The Tribunal also declared that Global Gaming has not mislead Bloomberry and Sureste into signing the MSA, and that Bloomberry were not justified to terminate the MSA.
However, the Arbitration Tribunal rejected Global Gaming’s claim that it was defamed by the publicized statements of the chairman of Bloomberry.
The Arbitral Tribunal alsoreserved for another order its resolution on the request of Global Gaming: (a) for the Award to be made public, (b) to be allowed to provide a copy of the Award to Philippine courts, government agencies and persons involved in the sale of the shares, and (c) to require Bloomberry or Sureste to inform Deutsche Bank AG that they have no objection to the immediate release of all dividends paid by Bloomberry to Global Gaming.
Bloomberry and Sureste "were advised by Philippine counsel that an award of the Arbitral Tribunal can only be enforced in the Philippines through an order of a Philippine court of proper jurisdiction after appropriate proceedings taking into account applicable Philippine law and public policy,” Bloomberry said.
Global Gaming in 2014 tried to sell its entire 921,184,056 Bloomberry to institutional investors. Global Gaming acquired the shares as part of the deal when it was hired as manager of Solaire, the first integrated resort and casino to open at the state-run Entertainment City.
However, Bloomberry managed to secure temporary restraining order from the Makati Regional Trial Court that stopped Global Gaming from selling its stake in company.
Share price of Bloomberry on Thursday went down by 4.5 percent, bucking the market’s 112.9 points gain, to close at P4.70 per share. – Rappler.com