A Singapore arbitration tribunal has ordered Bloomberry Resorts Corp. to pay US$296 million to Global Gaming Asset Management (GGAM) Philippines, a unit of William Weidner’s Las Vegas-based casino investment firm, saying the company wrongfully terminated a management agreement at Solaire Resort & Casino in Manila in 2013. The ruling must be confirmed by a Philippines court.
The 2011 agreement paid GGAM Philippines US$175,000 a month for technical services related to Solaire’s design, planning, layout and construction and of services around employee recruitment. Bloomberry terminated the relationship six months after Solaire opened in March 2013, saying GGAM Philippines failed to deliver on the terms of the agreement and more specifically a promise to bring high-rollers to the property. It also cited concerns over the casino’s design and layout.
In a filing to the Philippine Stock Exchange last week, Bloomberry said it believes the award is “fundamentally flawed in numerous respects” and will consider its options.
The $296 million award includes $196 million of payments for shares that Global Gaming Asset owns. The company was prevented from selling the shares after Bloomberry won an injunction against the share sale in 2014.
