Philippines-based casino operator Bloomberry Resorts Corp. has announced it has appealed an arbitration tribunal decision in Singapore that ordered the company to pay US$296 million to Global Gaming Philippines LLC, a subsidiary of U.S.-based Global Gaming Asset Management LLC (GGAM).
The payment was related to the termination of a management services agreement between Bloomberry units Sureste Properties Inc. and Bloomberry Resorts & Hotels Inc. and the unit of GGAM. The latter company has links to former casino executive William Weidner.
“On November 5, 2019, Bloomberry Resorts & Hotels and Sureste filed in the Singapore High Court an application to set aside the final award on the grounds of fraud and fraudulent concealment among others. This case is pending in Singapore,” Bloomberry said in a filing to the Philippine Stock Exchange (PSE).
The parties drew up the contract in 2011 that included veteran industry figure Weidner and some associates. The deal related to Solaire Resort and Casino, a property that opened in the Philippine capital of Manila in March 2013. According to the Bloomberry’s 2015 annual report, in September 2013 its subsidiaries terminated the agreement with Global Gaming Philippines, alleging “material breach” and “failure of discussions.” Global Gaming Philippines claimed the agreement had been wrongfully terminated, reported GGRAsia.
According to a 2016 decision by the same Singapore-based arbitration tribunal, Bloomberry Resorts was “not justified” in terminating the casino management services with Global Gaming Philippines.
In its PSE filing, Bloomberry said the decision of the arbitration tribunal “may be enforced in the Philippines only through an order of a Philippine court of proper jurisdiction, after appropriate proceedings taking into account applicable Philippine law and public policy.”
The operator reported consolidated third-quarter net profit of approximately PHP3.91 billion (US$77.2 million), up 245 percent year-on-year.
