Genting Americas fills motion to dismiss US$600m complaint case
Genting Malaysia’s subsidiary has filed a motion to dismiss a lawsuit over an investor dispute regarding its Resorts World Bimini property.
Malaysia.- Genting Malaysia has issued a company filing saying its subsidiary Genting Americas has filed a motion to dismiss the complaint filed by RAV Bahamas in the United States District Court, Southern District of Florida.
RAV Bahamas is a 22 per cent investor in BB Entertainment, the operating entity of the Resorts World (RW) Bimini casino complex. Genting Malaysia indirectly holds a 78 per cent interest in BB Entertainment. RAV Bahamas claims some US$600m in damages, alleging fraud by Genting arguing it used its majority ownership to conceal liabilities incurred at other properties and placed on the books of the resort.
The company stated: “Genting Americas seeks dismissal of the complaint on multiple grounds, including that this is a shareholder dispute and therefore should be dealt with pursuant to the Shareholders’ Agreement between the shareholders of BB Entertainment in a forum other than the US Court; the claims are time-barred; and the complaint fails to adequately allege facts showing that the required elements for each claim have been met. Genting Americas continues to firmly believe that the complaint is baseless and without merit, and will continue to defend against these claims.”
Genting Singapore posts revenue of US$423.5m for Q3
In other news, Genting Singapore shared its financial results for the third quarter of the year. It posted a revenue of SG$561.9m (US$423.5m), down 19 per cent year-on-year and 2 per cent sequentially. The decrease was mainly attributed to a 28 per cent year-on-year drop in gaming revenue from the integrated resort (IR), Resorts World Sentosa (RWS), to SG$330m (US$250m).
Non-gaming revenue, however, was up 1 per cent year-on-year and 22 per cent sequentially to SG$231.8m (US$174.7m). Revenue from other segments, including the group’s investment business and support services, rose by 2 per cent year-on-year to SG$144,000 (US$108,529).
The company also posted a net profit after tax of SG$79.4m (US$59.8m), down 63 per cent year-on-year and 27 per cent in quarter-on-quarter terms. EBITDA fell by 56 per cent year-on-year to SG$152.4m (US$114.9m), while adjusted EBITDA fell by 53 per cent year-on-year to SG$163.9m (US$123.5m).
The quarter-on-quarter decline in the company’s performance was mainly attributable to lower VIP rolling volume and win rate. The non-gaming business improved due to seasonality, despite the full closure of Hard Rock Hotel for renovation and re-branding, and the S.E.A. Aquarium’s weekly two-day closure for its expansion into the Singapore Oceanarium.
The casino operator also stated that despite a slower recovery of international visitor arrivals to Singapore, RWS has continued to advance its transformation to improve its appeal as a destination and enhance visitor experiences.
