Bloomberry Resort has been ordered to pay Global Gaming Asset Management $296 million for early termination of its contract. The Philippine based casino operator told the Philippines Stock Exchange that a Singapore tribunal had ordered them to pay $296 million to GGAM for early termination of management contract at Bloomberry’s Solaire Resort & Casino in Manila.
GGAM’s role at Solaire was terminated in September 2013 just one year after signing the contract. Bloombery claimed that GGAM had failed to deliver high rollers to Solaire’s VIP gambling rooms.
After the termination of the contract, GGAM tried to sell an 8.7 percent stake to Bloomberry, but the casino operators blocked the sale. In 2016, Singapore arbitrators ruled in favor of GGAM and confirmed that GGAM had the right to sell shares to Bloomberry.
GGAM had sought to be compensated $15 million for court cost, $85.2 M for lost management, and $39K for expenses. Now Bloomberry will be required to pay GGAM US$196.3M. GGAM also has the right to sell its shares in open market. Bloomberry will be liable for loss if the shares sale fail to realize the awarded amount.
Bloomberry has filed a petition with Singapore courts to quit the 2016 partial award on liability. This is based on the company’s belief that the award “was procured by fraud and is a violation of public policy.”
Bloomberry investors expected the Monday announcement which made the shares price go down by 4 percent. However, Singapore’s judgment can only come to force in the Philippines through the court. The appropriate decision must be made under the Philippines’ public Policy.