Razon group raises P11B for Solaire casino expansion
MANILA, Philippines – The group of ports and gaming magnate Enrique Razon Jr. raised billions of pesos in fresh funds for the expansion of its Solaire Manila Resort and Casino.
In a disclosure to the Philippine Stock Exchange on Monday, February 10, Razon's Bloomberry Resorts Corporation said its subsidiaries Sureste Properties Inc. and Bloomberry Resorts and Hotels Inc. signed an P11.425-billion corporate notes facility agreement with 6 banks.
The proceeds of the facility will be used to partially finance the construction of the "Phase 1A expansion" of the hotel and entertainment complex of Solaire, said the company.
The US$1.2-billion Solaire is the first of 4 casino resorts to open in the Entertainment City of state-run gaming regulator Philippine Amusement and Gaming Corporation.
The project has 500 hotel rooms, suites and villas, with 300 more rooms to be added over the next few years. A shopping center and an entertainment theater will also be built.
Bloomberry is in a legal battle with Las Vegas-based management firm Global Gaming Properties LLC, which used to run Solaire.
It has blocked Global Gaming's plan to sell 921.2 million Bloomberry shares, which are subject of ongoing arbitration proceedings. (READ: Court bars sale of Bloomberry shares)
Bloomberry and its partners are asserting claim over the shares after they terminated their services agreement with Global Gaming over alleged "uncured material breach."
Global Gaming maintained it "purchased and paid for our stock in Bloomberry entirely appropriately, and we own that stock. Clearly, we are entitled to the full rights of any shareholder, including the right to sell it." The company denied Bloomberry's allegations of contract breach. – Rappler.com