Solaire fires management services firm, COO
MANILA, Philippines (UPDATED) - The operator of Solaire Resort & Casino in Entertainment City along Manila Bay has terminated the services of its Las Vegas-based management services firm due to "material breach" of their agreement.
In a disclosure to the stock exchange on Friday morning, September 13, Bloomberry Resorts Corporation said it has terminated the management services agreement (MSA) with Global Gaming Philippines LLC (GGAM).
"GGAM has not spent any material time in attending to the management of Solaire and has failed to perform its obligations and deliverables under the MSA," according to the casino operator led by billionaire Enrique Razon, the country's 4th richest.
Bloomberry also said it will hire an "experienced casino hotel executive" to replace Michael French who is the chief operating officer of the resort and casino complex. French is the GGAM's official representative in Solaire.
Other GGAM management team will be retained because Bloomberry said they are "very capable and will continue to manage Solaire effectively without GGAM" and French.
GGAM to fight back
In a statement Friday, GGAM denied Bloomberry's claims.
"Bloomberry Resorts Corporation’s assertions regarding GGAM’s performance of its obligations under the Management Services Agreement have no factual or legal validity. Bloomberry has materially breached that agreement,"the Las Vegas-based firm said.
It said it will pursue legal action against the Razon-led firm in Singapore.
"GGAM is pursuing its rights under that contract in arbitration in Singapore.”
In April to June, Bloomberry swung to profit after posting losses in January to March.
The GGAM group oversaw the opening of the US$1.2 billion Solaire in March. It acquired a minority stake in Bloomberry in October 2012.
Solaire has become the first symbol of Philippines' high-stakes bid to join the world's elite gaming destinations.
Solaire Manila Resorts is the first of 4 enormous entertainment venues slated to rise over a giant chunk of prime, reclaimed land that industry and government leaders expect will attract millions of cashed-up Asian tourists.
When all 4 are open, Entertainment City is expected to boost the country's annual gaming revenues up to $10 billion. - Rappler.com