As reported several days ago by GGRAsia, one of the biggest Asian casino and hotel operators, the Bloomberry Resorts Corporation firm was ordered to pay a massive, $296 million-worth fine to one subsidiary of the United States-based Global Gaming Asset Management company. Bloomberry Resorts Corporation owns and operates the Manila-based Solaire Resort and Casino property.
Back in 2011, the company partnered with the Global Gaming Philippines corporation which was mainly responsible for providing the company’s eight hundred-rooms casino and hotel facility with different management services such as recruitment, construction, and design. The Las Vegas-based Global Gaming Asset Management company is led by an extremely powerful team of experts in the industry including William Weidner who is a former President and CEO of Las Vegas Sands Corporation.
For his work at the Global Gaming Asset Management LLC company, Mr. Weidner would pocket around $175k per month for supplying his expert advice to the company in question here, Bloomberry Resorts Corporation. His work would also include supplying expert advice on the company’s Sureste Properties Incorporated and Bloomberry Resorts and Hotels Incorporated subordinates.
Abrupt Cancellation of Business Agreements
As it was reported by several news outlets out there, the Manila-based casino and hotel operator abruptly canceled this business agreement shortly after launching its latest business venture, Solaire Resort, and Casino back in March of 2013. In its official press release regarding this issue, the Bloomberry Resorts Corporation’s officials said that the reason for canceling this agreement lies within material breach and failure of discussions with Global Gaming Philippines.
This move naturally led the consultant company’s subsidiary to start working on a lawsuit in which the company alleged that the Manilla-based Bloomberry Resorts Limited was not justified when it comes to such abruptly terminating the business alliance. The lawsuit against the Asian operator also detailed that the casino operator should pay a range of costs and fines including fees and expanse on pre-termination of the deal alongside other damages.
Bloomberry Resorts Corporation Liable for More Than $85 Million in Damages
As revealed recently, the tribunal consisting of three members ruled that the sued company, Bloomberry Resorts Corporation is, in fact, liable for around $85 million in a range of damages, in addition, to be liable around $15 million in additional expenses and fees. As if this was not damaging enough, the Singapore-based tribunal decreed that the company sued here is also on the hook for around 921 million shares which are worth around $195 million that the Global Gaming Philippines LLC firm has in its Asian business.
Following the news on such massive judgment fine, the Bloomberry Resorts Corporation’s officials shared an official press release in which it is stated that in the case in which Bloomberry Resorts Corporation does not pay for the fine related to the shares, the Global Gaming Philippiness LLC firm can freely sell the shares on its own on the market. The same official press release also says that the Bloomberry Resorts Corporation’s officials are directed to take all the necessary steps required to facilitate the shares sale.
It was also revealed that Bloomberry Resorts Corporation plans on being liable for the potential difference when it comes to the selling price in the case of the price is less when compared to the expected shares’ price. Nonetheless, commenting on the news, the company’s officials also said that the tribunal’s decision was flawed in many aspects, but they will wait for a court to confirm the ruling. Lastly, the company’s officials believe that the ruling was enforced by the jurisdiction of the Philippines.