Makati court bars sale of Bloomberry shares
MANILA, Philippines – Enrique Razon Jr.-led Bloomberry Resorts Corporation won a court order preventing the sale of its shares held by a Las Vegas-based management firm that used to run its Solaire casino in Manila.
On Monday, January 20, the Makati Regional Trial Court granted Bloomberry's petition for a "temporary order of protection" to prevent Global Gaming Properties LLC (GGAM) from selling 921.2 million Bloomberry shares. The order will be in effect for 20 days.
"Wherefore, in the light of the foregoing, this court grants the petitioner’s application for the issuance of an immediately executor 20-day temporary order of protection, pursuant to paragraph 3 of Rule 5.9 of the Special ADR Rules. Accordingly, respondent Global Gaming Philippines LLC, or any of its directors, officers, and its placement agents, respondents Deutsche Regis Partners Inc., as stockholder and nominee account holder, representative, agent, or any other person or entity within its control, and respondent Philippine Stock Exchange (PSE), as operator of the stock market, are temporarily restrained from disposing of... any of the 921,184,056 shares in Bloomberry Resorts, beneficially owned by respondent Global Gaming Philippines LLC," the court order read.
Bloomberry, along with Sureste Properties Inc. and Prime Metroline Holdings Inc., sought to block the sale of the shares, which are subject of ongoing arbitration proceedings.
Bloomberry and its partners are asserting claim over the shares, citing the termination of their management services agreement (MSA) with GGAM over the latter's "uncured material breach of the MSA."
"If the sale of the shares is completed, the petitioners will not be able to get back the shares and they will not be able to satisfy any judgment for damages that they may be able to obtain against GGAM in their ongoing arbitration proceedings on the termination of their MSA…," Bloomberry said.
Bloomberg earlier quoted GGAM as saying that like any shareholder, it has full rights to sell the Bloomberry shares. It maintained it bought and "appropriately" paid for said shares.
GGAM wrote the PSE on January 16 disclosing it was planning to sell its stake in Bloomberry to investors through the bourse.
Following this, Bloomberry asked the PSE to suspend trading in its stock from January 16 to 23. The PSE however suspended the trading for just a day.
Bloomberry in September terminated its 5-year MSA with GGAM because of “material breach” of contract. The move prompted GGAM to file an arbitration case against Bloomberry in Singapore.
GGAM provided management services to Solaire, the casino and hotel project of Bloomberry. GGAM is led by industry veterans with over 3 decades of experience in global gaming development and operations in Las Vegas and Macau. – Rappler.com