Tiger Resort Asia Ltd. (TRAL) has filed a criminal complaint against billionaire entrepreneur Kazuo Okada related to his takeover of the Okada Manila integrated resort (IR) on May 31.
TRAL owns 99.9 percent of Tiger Resort, Leisure and Entertainment Inc. (TRLEI), which operates the IR in Manila’s Entertainment City casino zone. The suit alleges that the takeover, which occurred after the Philippine Supreme Court ordered the restoration of the IR’s 2017 board, included acts of fraud and violence.
TRAL also warned that more “criminal and civil cases” will be filed in the near future, per the Manila News. The original complaint was filed before the Hong Kong Police Wan Chai Division.
“As a result of Kazuo Okada’s criminal acts, the operations of Tiger Resort Leisure and Entertainment Inc. (TRLEI) and Okada Manila have been unjustly paralyzed, and consequently TRAL has suffered significant and irreparable loss,” the complaint reads.
In particular, TRAL accuses the Kazuo Okada team of deceiving the Philippine Supreme Court into providing a status quo ante order (SQAO) in the weeks before the takeover by submitting an outdated registration document from before his 2017 ouster from TRLEI, misrepresenting the Hong Kong Registry. This, TRAL said, has since been updated to reflect his removal from the company.
As reported by Inside Asian Gaming, the TRAL-backed board regained control of Okada Manila on September 2 following an order from Philippine Amusement and Gaming Corp. (PAGCOR), the country’s casino regulator, acting on a Department of Justice ruling.
“We are thankful that Hong Kong authorities have acted upon the criminal complaints against Kazuo Okada and his cohorts,” TRAL said. “This is just the beginning of the slew of criminal and civil cases that we will be filing against the Kazuo Group for their blatant disregard of the law.
“While we put in order the management and operations of Okada Manila, we are conducting an investigation on the illegal cash withdrawals from the casino cage, the unfair treatment and illegal dismissal of our staff, as well as the overpayments to contractors. We will submit these as further evidence to the Hong Kong Police and use these to file criminal and civil lawsuits in Hong Kong.”
On September 9, the Philippines Court of Appeals denied a petition from Kazuo Okada to block the newly returned board from conducting business and “performing any and all acts that would displace” his own board or “disturb” the SQAO issued by the Supreme Court in May. That order, which required the TRLEI board to be restored to its composition in 2017, ultimately led to the takeover.
The Court of Appeals’ 10th Division denied the petition, but partially granted Okada’s motion for a cease-and-desist order preventing PAGCOR or the TRAL-backed board from interfering with or preventing access to various documents.
The court ruled that all parties may inspect the corporate records of TRLEI “including its contracts with landlord, suppliers and contractors” as well as any documents relating to the planned NASDAQ listing of Okada Manila in the United States via a merger with special purpose acquisition company (SPAC) 26 Capital, and so on.
In a separate press release late last week, TRAL confirmed that it had held its first board of directors meeting since reclaiming control of the property but revealed that Okada did not attend despite retaining his position on the TRLEI board per PAGCOR’s instructions.
TRAL noted that, “Only Kazuo Okada and his interpreter are allowed to enter Okada Manila. Anthony Cojuangco, Dindo Espeleta and other members of the ousted illegally constituted board are barred from entering the property. Okada, however, did not join the board meeting in person or via video conference.”
In related news, all departments at the Philippine casino resort “are functioning at full capacity” since control was returned to TRAL, said the company’s legal counsel, Carlos Ocampo, who spoke to local media outlet ABS-CBN.
Ocampo called the reinstatement of the TRLEI board “a return to normalcy.” But he added that the intra-corporate dispute has had a negative impact on Okada Manila’s performance.
“The top line, I would characterize it as satisfactory,” said Ocampo. “Of course, with all distractions, I’m sure it could have been better. But as far as the bottom line is concerned, it will take some time to review the books because we don’t know what kind of expenses were incurred (by the former TRLEI board). … We will, on an ad hoc basis, look at each and every contract to see what could be done; but I cannot make any commitments at this stage.”
Parent company Universal Entertainment has accused Okada’s representatives of “wrongfully” seizing assets and “destroying” key documents, including business contracts.
Meanwhile, Okada Manila may still complete its planned $2.5 billion merger and listing this year. “Our company is planning to move full-steam ahead with Universal Entertainment Corp. to list Okada Manila,” said Jason Ader, chairman and CEO of 26 Capital. “It is possible we can do it this year.”
The largest IR in the Philippines’ Entertainment City casino zone, Okada Manila opened in late 2016. It features 993 suites and villas, 500 table games and 3,000 electronic gaming machines.
