An arbitration tribunal in Singapore has ordered Asian casino investor Bloomberry Resorts to pay the Global Gaming Philippines.
Singapore.- Bloomberry explained that the payment ordered by the arbitration tribunal was related to the termination of a management services agreement between subsidiaries Sureste Properties Inc and Bloomberry Resorts & Hotels Inc, and Global Gaming Philippines. The deal was related with Solaire Resort and Casino, a property that opened in Manila in March 2013.
The parties had struck a casino management services contract in 2011. However, in September 2013, Bloomberry Resorts and Hotel terminated the agreement with Global Gaming Philippines, alleging “material breach” and “failure of discussions”. According to the Global Gaming Philippines, the agreement was wrongfully terminated.
The €270 million award included €77,7 million as damages for lost management fees to Global Gaming Philippines and a €178,4 million for the 921.2 million shares Global Gaming Philippines currently holds in Bloomberry Resorts.
“If [Bloomberry Resorts] do not pay for the shares, Global Gaming Philippines may sell the shares in the market and [Bloomberry Resorts is] directed to take all steps necessary to facilitate this sale. [Bloomberry Resorts] will be liable for the difference in the selling price if it is less than the awarded price,” the casino operator stated during monday’s filing.
The award also included €14 million in costs, and pre-termination fees and expenses to Global Gaming Philippines.