Bloomberry to appeal $296.1m court ruling

Solaire, Manila
Solaire, Manila

Bloomberry Resorts said it will appeal a Singapore court ruling ordering it to pay $296.1 million to the Philippine unit of U.S.-based Global Gaming Asset Management in a long-running dispute over the termination of a management services agreement.

In a filing with the Philippine Stock Exchange, Bloomberry said the award was less than half of what the claimants had been seeking. 

It said it “believes the Final Remedies Award is fundamentally flawed in numerous respects, and counsel for the respondents is considering its options in Singapore and elsewhere.”

Bloomberry also said the ruling had to be upheld by a Philippine court to be enforceable.

The Singapore court awarded GGAM Philippines $85 million in damages for lost management fees, as well as $391,224 in fees and expenses. It also ordered the company to pay PHP10.16 billion ($195.5 million) for Bloomberry shares held by GGAM.

The operator of the Solaire Resort and Casino in Manila was also ordered to pay $14.9 million in costs.

Bloomberry said it had filed a related petition with Singapore courts to vacate an earlier partial award because it says it was “procured by fraud and in violation of public policy.”

The Philippine operator terminated GGAM’s five-year contract to run Solaire in 2013, just one year into the agreement. Bloomberry said GGAM had breached the terms, however the management company countered saying it had been unfairly dismissed.