A stakeholder in Genting-operated Resorts World Bimini, in the Bahamas, is seeking damages in excess of $600 million from the company, according to a filing by the parent company Genting Malaysia Berhad (GENM).
In a filing to Bursa Malaysia by GENM, the 22 percent stakeholder in RW Bimini, RAV Bahamas Ltd, filed a complaint on October 7th naming GENM wholly-owned subsidiary Genting Americas (GAI) ‘which involves the operations of Resorts World Bimini (RW Bimini)’.
The filing did not clarify specifics of the litigation but the US District Court for the Southern District of Florida lists it as ‘Other Fraud’.
According to a report by The Bahamas Tribune, RAV Bahamas is claiming that Genting used its majority ownership to conceal liabilities incurred at other properties and placed on the books of RW Bimini.
RW Bimini is owned and operated by BB Entertainment Ltd (BBE), which GENM indirectly holds a 78 percent interest in via GAI.
Financials cited by The Tribune indicate it had $885 million in liabilities versus just $191.5 million in assets at year-end 2022, of which $165.2 million represented the value of RW Bimini’s real estate.
RAV Bahamas reportedly claims that GAI conducted ‘a massive and co-ordinated fraud’ and that it has been ‘depriving’ RAV Bahamas of profits and limiting access to the property’s financial records.
In the filing, Genting notes that ‘GAI is of the view that the Complaint is baseless and totally without merit and will vigorously defend against the Complaint’.
It furthers that it will make further announcements ‘as and when there are material developments’.
