Genting Malaysia has fired back against the $600 million legal action taken against it by its partner in Resorts World Bimini, in the Bahamas, calling the claim ‘baseless’ and that it is ‘nothing more than a shareholder dispute’.
In a filing by Genting Malaysia Berhad on Thursday, the company states that its partner in the venture, RAV Bahamas ‘seeks unsubstantiated damages in excess of $600 million, and also requests pre- and post-judgment interest at unspecified rates’.
The company furthers: ‘these malicious and baseless claims are an attempt by RAV and its principals to extract an exorbitant payment from GAI and inflict severe reputational damage upon GAI (Genting Americas)’.
Earlier this week, Genting indicated that it had been informed of the claims against it, which are classified by the courts as ‘fraud’.
Genting operates RW Bimini via BB Entertainment, in which GENM indirectly holds a 78 percent interest via GAI.
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.
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 Thursday filing with Bursa Malaysia, the group indicates that ‘as the Complaint is entirely baseless and without merit, we do not expect there to be any material impact on the financial results or operations of the GENM Group from such claims.’
The group furthers that ‘there are no expected losses, other than the cost of defense’.
The group indicated that GAI ‘is preparing a comprehensive response to the Complaint, which will be filed with the Court in the coming weeks.’
