Universal Entertainment, the operator of Okada Manila, has announced that its subsidiaries, including Tiger Resort, Leisure and Entertainment (TRLEI) have been leveled with a lawsuit in the US state of Delaware over an agreement with special purpose acquisition company (SPAC) 26 Capital in order to list on the NASDAQ Capital Market.
The suit alleges that Universal’s involved subsidiaries had breached their obligation to complete the merger of the companies and proceed with the listing and is requesting that the court force the merger to go ahead ‘promptly.
The comes despite a September 30, 2022 notice noting that the proposed merger date had been pushed back to September 30th of 2023.
The merger had initially been announced in October of 2021, with aims to be completed by June of 2022.
However, Okada Manila was also subject to a three-month ‘illegal’ occupation of its property organized by the company’s former founder Kazuo Okada.
In its previous announcement of the extension of the date for the proposed merger, Universal still demonstrated that it intended to go ahead with the partnership.
It’s unclear what affect the new lawsuit could have on the planned merger.
In its most recently announced results, Okada Manila saw a 50 percent yearly increase in gross gaming revenue in 4Q22, to $192.6 million, while also seeing a 10 percent quarterly increase.
Adjusted segment EBITDA also saw strong improvements in the quarter, up 96.3 percent yearly, to $51.88 million.