The opening of Solaire Resort & Casino’s new VIP lounge in the Philippines will be delayed by three months, as announced by Hong Kong junket investment company Rich Goldman Holdings. However, the firm hopes to fully comply with the program and has decided to extend the deadline for the establishment of a new VIP lounge due to a joint venture agreement.
The original terms of the agreement stated that the joint venture would be terminated if the conditions were not met before July 26. But the coronavirus pandemic in the Philippines and closings of playgrounds have prevented Rich Goldman from complying with the agreement.
This was recognized by both parties, so the terms were renegotiated in a friendly way and the deadline was extended until October 26.
The company assured in April that it would create a joint venture for the development of a VIP lounge in Solaire, the video transmission and live gaming tables, which would be operated by Bloomberry Resorts.
But during the pandemic, Bloomberry had some problems, along with a decrease in its profits at the end of March, which represents 13% less compared to the same period in 2019. Annual profits decreased 16% in March due to the closure of Solaire.
“As a result of the Covid-19 outbreak in the Philippines and continued closure measures, additional time is required for the fulfillment of certain preconditions under the joint venture agreement,” Rich Goldman noted on its website.
“Accordingly, the parties to the joint venture agreement agreed in writing on July 21, 2020 to extend the long end date to October 26, 2020 (or any other date that the parties may agree to in writing),” he said.
Despite the lifting of restrictions in the country, Solaire remains cautious as he moves forward with the JV.
“Despite the Metro Community Enhanced Quarantine (ECQ) covering Metro Manila extending through mid-May, our team continues to prepare for our eventual reopening. We anticipate a slow restart of operations as we measure the market response after the ECQ is lifted,” said Solaire CEO Enrique K. Razon Jr.
And he added:
“We are doing this to ensure that all employees we allow to return to work are healthy and in the best way to provide our exclusive service.”