The legal battle continues for control of Philippine integrated resort (IR) Okada Manila. The board of its majority owner, Tiger Resort Asia Ltd. (TRAL), has frozen the company’s bank accounts as part of a strategy to keep founder Kazuo Okada from seizing control of the entity.
According to a June 19 statement, BDO Unibank (BDO), Asia United Bank (AUB) and the Union Bank of the Philippines have frozen the accounts due to the ongoing dispute between TRAL and a group representing Okada. In 2017, the Japanese billionaire was ousted from the board of Okada Manila operator Tiger Resort, Leisure and Entertainment Inc. (TRLEI) and parent company Universal Entertainment due to allegations of fraud. Ever since, Okada has waged a legal war to regain control of the property, and in May, the Philippine Supreme Court agreed that he should be reinstated.
Estrella Elamparo, attorney for the TRAL-backed board, told the Manila Times that both parties were required to sign an agreement to continue paying resort employees amid the turbulence. She said the Kazuo Okada-led faction refused to sign any agreement bearing the signature of director Hajime Tokuda.
“Despite being on the right side of the law, the legitimate board of TRLEI decided to draft and sign the agreement, understanding that the welfare of the employees is at stake,” said Elamparo. “However, the camp of Kazuo Okada was not keen on signing the agreement, imposing unreasonable conditions.
“After their violent and illegal takeover, Okada Manila has no access to its bank accounts,” she continued. “We expect Okada Manila’s funds to dwindle in the coming weeks, putting not only guests at the losing end, but at the same time putting at risk its over 5,000 employees, many of whom rely on their salaries to meet their daily needs.
“No bank will engage with an entity under an ownership dispute. Once Okada Manila’s funds start to run dry, they will have problems dealing with the operations of the integrated casino resort.”
The TRAL-backed board also says the rival group may resort to using “cage money,” or casino and hotel revenues, to fund the operations and payroll, and warned these funds would “run dry soon.”
The takeover of Okada Manila came on order of the Supreme Court of the Philippines, which issued a status quo ante order in April requiring the TRLEI board be returned to its status of five years ago, before Kazuo Okada was removed.
In a statement posted on the TRLEI website, the Kazuo Okada group declared that “all financial obligations are met and … all ongoing business transactions are right on track.
“The purported bank freeze … has reported has no effect at all on Okada Manila’s commitment to its partners and valued patrons,” per the statement. “Management is closely working with the banks in order to provide continued support to TRLEI’s business needs.”
The Kazuo Okada group insists that it will be business as usual at Okada Manila, which “will continue to prioritize the welfare of its employees and customers. There will be no disruption in the operations of Okada Manila and that definitely includes the salaries and compensation of its employees.
“Chairman Okada has assured that all financial obligations are met and that all ongoing business transactions are on the right track,” the statement said.
Meanwhile, in 2021 Universal Entertainment announced that it planned to obtain a NASDAQ listing through a merger with a special acquisition company (SPAC) 26 Capital, led by industry veteran Jason Ader. Ader said investors are alarmed by the conflict unfolding in Manila.
“Important industry veterans and investors are watching from Macau and Las Vegas, and they are shocked and appalled,” he told Asia Gaming Brief. “My phone has not stopped ringing from my friends and colleagues that run gaming companies in Macau and Vegas.”
