In May, associates of Japanese billionaire Kazuo Okada stormed his eponymous resort, Okada Manila, in the Philippines capital, then ejected its board and took over management of the property. The replacement board was in charge until it was ousted in September, and the previous board was restored.
Now Universal Entertainment Corp, parent of Okada Manila operator Tiger Resort, Leisure and Entertainment Inc. (TRLEI), says the short-term occupation will cost the company JPY1.6 billion (US$11.5 million), not counting legal fees.
The Kazuo Okada group seized control of Okada Manila after the Philippines Supreme Court issued a status quo ante order (SQAO) ordering that TRLEI restore the board to its 2017 composition. In that year, Kazuo Okada was ousted on charges he illegally plundered company funds.
Later, the Supreme Court said the SQAO did not give the Kazuo group authority to occupy the resort. After his team got the boot, Okada was arrested on arrival at Ninoy Aquino Airport and charged with grave coercion related to the seizure. He has pleaded not guilty.
On November 15, with the publication of its second-quarter financial results, Universal said it expects to incur a “substantial amount of various expenses,” including litigation costs, as a result of the dispute—costs that will affect its year-long fiscal results.
“Under these circumstances the growth in operating income ordinary income and net income attributable to owners of the parent are relatively modest compared to the increase in sales because of the aforementioned expenses and extraordinary losses,” the company stated.
According to GGRAsia, Universal delayed publication of its third-quarter results until mid-December due to the commotion. For the quarter that ended in June, it reported a 97 percent year-on-year increase in net sales to JPY56.3 billion (US$405 million), with net income of JPY6.77 billion (US$49 million). That’s compared to a loss of JPY16.9 billion (US$121 million) for the second quarter of 2021.
Okada himself was released from custody last month after posting bail, and said he returned to the Philippines despite warnings from his lawyers that he might be detained.
“I want to show to the Filipino people and the world that I am not afraid,” he said in a statement to the Manila Times. “I came back to face this ‘grave coercion’ charge against me and my associates. I have nothing to fear when I know I am standing on the right side of the law. I will not bow down to intimidation, and I will not back-off from this legal battle. This fight isn’t over.”
Kazuo Okada described his arrest as a “brief inconvenience.”
“In the end I will be able to prove that I am the rightful and beneficial owner of Okada Manila. I am confident that the legal process within the Philippine courts system will vindicate us in all the cases filed against me and my business associates,” he said.
Those associates include Filipino businessman Antonio “Tonyboy” Cojuangco and two others, also charged with grave coercion in connection with the short-lived takeover of Okada Manila.
